BankBazaar.com, the financial marketplace, is on track for 150% revenue growth this fiscal year. The company, which recently received Rs 191 Crore investment from Experian, has grown significantly in the last one year, doubling visitors and more than doubling revenue year to date. In Q3-18, the company received 70M visitors per quarter, and they are all set to welcome 100M visitors in the last quarter of FY18.
In the just concluded Oct-Dec’17 Quarter, company’s operating revenue witnessed a whopping 168% growth while total expenses grew by only 53% as compared to same time last year. Growth has been across all product categories: Credit product have grown 178% and Insurance transactions have grown 146% during the same period last year. PaperLess mutual funds on BankBazaar including SIP, One Time, ELSS, and Liquid are very popular with existing customers and BankBazaar is signing up over 100 new retail investors per day (interestingly 75% of whom are new to Mutual Fund). The company continues to invest heavily by hiring talent for its PaperLess program to ensure consumers can get instant and paperless access to loans, mutual funds and insurance (via BankBazaar Insurance). Bankbazaar has already added 400 new employees in 2017.
In Q3 FY17, the number of visitors to the site has touched 70M visits per quarter a 115% growth year-on-year, with 25M visitors for the month of December. The company’s performance over the course of the year has been largely supported by the organic growth of its business. Free transactions have doubled between Q3-FY17 and Q3-FY18, due to repeat of customers buying across loans, credit cards and mutual funds. Currently, more than 75% of the traffic is organic. With this long-term approach of growth with positive unit economics bearing fruit, the company is set to break-even by mid FY19.
Adhil Shetty, Co-founder and CEO, BankBazaar, attributes this growth to their Paperless technology and platform: “There is a clear realisation that digital businesses need to grow organically to be sustainable, and we are very happy with repeat usage on our platform. Furthermore digital paperless businesses can make net margins of almost 80% compared to traditional call centre businesses or businesses run by offline agents that make only 10% net margins on products sold. With close to 60% of our customers opting for our paperless products, we have been able to scale Q3 quarterly revenue at 168% while keeping costs controlled. Thanks to increased awareness and customer adoption, we believe that FY18 will be a year of even more organic growth as India migrates to Paperless.”
The BankBazaar app has been a significant contributor to the company’s organic growth as well. With close to 2M downloads, it is one of the most handy personal finance apps available. The introduction of a provision to check one’s Credit Report through the Experian Tool for free makes the app all the more versatile. It also lets you track your bank balance and Credit Card dues. BankBazaar hosts the widest range of financial products, featuring offers from over 85 of the biggest Banks, NBFCs, and Mutual Funds .
Bankbazaar website Alexa rank is 160 with no other marketplace in the top 500 Alex India Ranks and ComScore December 2017 data shows BankBazaar to be 500% larger than any other financial marketplace. The company is focused on its paperless vision and has a clear policy not to tie up with offline sales agents or corporate agents. It has raised USD 110M through funding from investors such as Amazon, Experian, Fidelity Growth Partners, Sequoia Capital and Walden International.