Pb Fintech Limited · NSE:POLICYBZR
Pb Fintech — Q2 FY24 Earnings Presentation
75 slides from Pb Fintech's earnings presentation, September 2023
Slide 1: Earnings Call
Earnings Call Quarter ended September 2023
Slide 2: What do we do?
What do we do? PB Fintech The umbrella entity comprising of India’s leading marketplaces that offer end-to-end insurance & credit solutions to consumers. Our platforms simplify complex choices, present personalized solutions & enable smart financial decisions. We leverage technology & data to drive
Slide 3: Key Highlights – Q2 FY24
Key Highlights – Q2 FY24 Consolidated Revenue grew 42% YoY to ₹812 Cr Core online Revenue grew 46% YoY to ₹597 Cr Total Insurance Premium is at an ARR of ₹13,900 Cr New Premium for Protection (Health & Term Insurance) grew 53% YoY^ Lending Disbursal is at an ARR of ₹16,556 Cr Credit cards issued at
Slide 4: Core Online Business: Q2 FY24
Core Online Business: Q2 FY24 Revenue up 46%, EBITDA up by ₹56 Cr YoY Core Online Business EBITDA Core Online Business Margin % Revenue EBITDA FY22 (₹ Cr) (₹ Cr) FY22 FY23 68 597 117 334 11% 46% 410 12 3% 264 -18% -48 Q2 Q2 Q2 Q2 Q2 Q2 FY22 FY23 FY24 FY22 FY23 FY24 EBITDA referred here is Adjusted E
Slide 5: Core Online Business: H1 FY24
Core Online Business: H1 FY24 Growth with consistent improvement in Margin & Profitability Core Online Business Revenue Core Online Business EBITDA (₹ Cr) (₹ Cr) 12% 1,113 EBITDA Margin % 10% 929 781 703 2% -4% 17 90 137 -31 H2 H1 H2 H1 H2 H1 H2 H1 FY22 FY23 FY23 FY24 FY22 FY23 FY23 FY24 EBITDA refe
Slide 6: Core Online Business: H1 FY24
Core Online Business: H1 FY24 Strong growth with high operating leverage ₹ Crores H1 FY23 H1 FY24 ∆ Revenue 781 1,113 333 (46% YoY) Contribution (non-GAAP)# 337 501 164 (49% YoY) Adjusted EBITDA (non-GAAP) 17 137 120 (705% YoY) # – Contribution: Revenue minus Direct Costs (Employee direct cost + Acq
Slide 7: Core Online Business: H1 FY24
Core Online Business: H1 FY24 Adjusted EBITDA grew ₹120 Cr YoY Core Online EBITDA Previous ₹ Crores EBITDA YoY ∆ Business Year H1 -80 17 97 FY23 H2 -31 90 121 FY24 H1 17 137 120 7
Slide 8: New Initiatives: Q2 FY24
New Initiatives: Q2 FY24 Maintaining leadership while improving efficiency New Initiatives Contribution Margin % (₹ Cr) -9% Revenue 215 EBITDA 164 -24% EBITDA Margin % 16 -21 -128% -75% -65 -40% -55 -26% Q2 Q2 Q2 Q2 Q2 Q2 FY22 FY23 FY24 FY22 FY23 FY24 EBITDA referred here is Adjusted EBITDA (non-GAA
Slide 9: Overall business: Consistent Revenue Growth
Overall business: Consistent Revenue Growth With improving margins Revenue Margins (₹ Cr) New Initiatives Core Online Business Contribution margin EBITDA margin 42% 29% 30% 812 24% 573 2% -9% 280 -25% Q2 Q2 Q2 Q2 Q2 Q2 FY22 FY23 FY24 FY22 FY23 FY24 EBITDA referred here is Adjusted EBITDA (non-GAAP)
Slide 10: Overall business Q2
Overall business Q2 Q2 FY23 Q2 FY24 YoY ₹ Crores Core Core Core New New New Total Online Total Online Total Online Initiatives Initiatives Initiatives Business Business Business Revenue 573 410 164 812 597 215 42% 46% 31% Contribution 140 179 -39 247 266 -19 76% 48% 51% (non-GAAP)# Contribution % 24
Slide 11: Overall business H1
Overall business H1 H1 FY23 H1 FY24 YoY ₹ Crores Core Core Core New New New Total Online Total Online Total Online Initiatives Initiatives Initiatives Business Business Business Revenue 1,079 781 298 1,477 1,113 364 37% 43% 22% Contribution 246 337 -91 466 501 -34 90% 49% 62% (non-GAAP)# Contributio
Slide 12: Renewal / Trail revenue
Renewal / Trail revenue At an annualized run rate of ₹436 Cr Current Renewal / Trail Revenue ₹ 436 Cr^ Insurance Credit 48% ARR ARR ₹ 294 Cr ₹ 436 Cr Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 FY19 FY19 FY19 FY19 FY20 FY20 FY20 FY20 FY21 FY21 FY21 FY21 FY22 FY22 FY22 FY22 FY23
Slide 13: Overall business: PAT losses reduced by 89% to 21 Cr in Q2
Overall business: PAT losses reduced by 89% to 21 Cr in Q2 On track for PAT breakeven for FY24 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 ₹ Crores FY22 FY22 FY23 FY23 FY23 FY23 FY24 FY24 Adjusted EBITDA -91 -80 -66 -53 -28 28 23 13 (non-GAAP) ESOP Charges 226 175 168 174 105 96 100 102 EBITDA -317 -255 -234 -226 -133
Slide 14: Overall business: PAT losses reduced by 92% to 33 Cr in H1
Overall business: PAT losses reduced by 92% to 33 Cr in H1 On track for PAT breakeven for FY24 H2 H1 H2 H1 ₹ Crores FY22 FY23 FY23 FY24 Adjusted EBITDA -171 -119 0 36 (non-GAAP) ESOP Charges 401 341 201 202 EBITDA -572 -460 -201 -166 Depreciation 23 29 35 42 Finance Cost 7 10 12 13 Other Income 84 1
Slide 15: Insurance Premium grew 144% in 2 years; Credit Disbursal grew 175%
Insurance Premium grew 144% in 2 years Credit Disbursal grew 175% in 2 years Insurance Premium Disbursals (₹ Cr) (₹ Cr) New Initiatives Core Online Business 4,139 3,475 144% 175% 2,922 2,545 1,423 1,506 Q2 Q2 Q2 Q2 Q2 Q2 FY22 FY23 FY24 FY22 FY23 FY24 15
Slide 16: Retail protection insurance new premium grew 53% YoY in Q2
Retail protection (Health & Term) insurance new premium grew 53% YoY in Q2 Q2 Protection New Premium H1 Protection New Premium (₹ Cr) (₹ Cr) 53% 46% Q2 Q2 H1 H1 FY23 FY24 FY23 FY24 16
Slide 17: Insurance Continues to Scale
Insurance Continues to Scale Improving Efficiency & Customer Experience “Har Family Hogi Insured!” We aim to protect every family in India against the financial impact of Death, disease & disability by having Health and Life insurance. We continue expanding our regional reach using TV campaigns in
Slide 18: Credit Continues to Scale
Credit Continues to Scale Improving Efficiency & Customer Experience Paisabazaar continues to cater to India’s diverse consumer segments for their varied credit needs. We are India’s largest comparison platform for credit products, offering wide choice, ease of access and transparency to consumers
Slide 19: Two leading consumer destinations
Two leading consumer destinations Policybazaar Paisabazaar 72.3 mn 39.1 mn Registered Consumers(1) Consumers accessed their Credit Scores(4) Consumers who Consumers who 15.0 mn have purchased at least one insurance 4.5 mn have made at least one transaction on Transacting Consumers(2) policy through
Slide 20: policybazaar
policybazaar@
Slide 21: Policybazaar key metrics
93% 15.0mn Market share Transacting Consumers (online aggregators)^ till date ₹ 3,475 Cr Insurance premium 38.2mn (Q2 FY24) Insurance Policies sold (till date) ₹ 14k Cr Insurance premium 53% (ARR Q1 FY24) Protection (Health & Term) 51 new premium growth Insurance Partners ^ Market share is as per th
Slide 22: India continues to have one of the widest protection gaps
India continues to have one of the widest protection gaps Health & Term Insurance is needed 65% of Healthcare spend is out of pocket 94% of income is not protected % Out of pocket spends Mortality protection gap (Total healthcare spends – Insurance coverage) (Protection required – Sum Insured) 37% 6
Slide 23: The future is in Tier 2 & 3 cities
India is vast and growing The future is in Tier 2 & 3 cities Penetration (%) Density (USD) Geography Life Non-Life Total Life Non-Life Total USA & Canada 3.1 8.8 11.8 1,878 5,392 7,270 Advanced EMEA 4.6 3.3 7.9 1,893 1,341 3,234 Emerging EMEA 0.7 1.2 1.9 30 50 80 Advanced Asia Pacific 6.2 3.1 9.3 2,
Slide 24: Simplifying Insurance
Policybazaar.com Simplifying Insurance Challenges faced by the insurance industry Policybazaar Offering Tech enabled processes Human Intensive Operations Data backed innovation Digital distribution Dependence on high cost physical distribution Sharp risk assessment Product & process transparency for
Slide 25: PB Advantage for consumers
PB Advantage for consumers Uniquely positioned for capturing mindshare Policybazaar provides a holistic product suite with seamless experience Customized journeys 500+ Product span Service & claims support Assistance using chatbots (from 51 insurers) (full stack experience) Natural language processi
Slide 26: PB Advantage for insurance partners
PB Advantage for insurance partners Leverage data and technology to create best in class products and experiences Improved customer • Data disclosure directly from the customer - bypassing agent channel which is prone to fraud disclosures • Tech based document verification Extensive historical • 15
Slide 27: Our business model
Our business model Insuring Indian Middle Class Families Inbound Consumer consumers with “Har Family Hogi Insured” education through high purchase mass media & PR intent (Direct Traffic) High disclosure High intent Better Conversion leading to sharp consumer, thus leading to efficient risk assessmen
Slide 28: Segmental Market Reach Approach
Segmental Market Reach Approach Awareness brand campaigns in local / regional languages Tamil Telugu Marathi Hindi Malyalam 28
Slide 29: The best of both worlds: Online B2C + Offline Push
The best of both worlds: Online B2C + Offline Push Direct to Consumer Retail Business Intermediary Led Business Online B2C Online B2C + Offline Push B2B2C Consumer Led business Consumer Led business Agent Led / Initiated business Consumers Consumers Consumers •Tele-assistance during purchase •Tele-a
Slide 30: New channels of access
New channels of access Offline Push through stores & in-person appointments Website / Mobile site Telephone Chat • Choice of products, pricing, • Assistance during purchase • Assistance during purchase combos • Service coordination – through chatbots • Unassisted purchase medicals + documentation •
Slide 31: Phygital approach: 91 insurance centres in 61 cities
Phygital approach: 91 insurance centres in 61 cities On-ground sales support in 125+ cities, helping convert better Gurgaon Kolkata Pune Mumbai • Omni-channel experience for trust building Hyderabad Bengaluru • Extension of PB experience from tele-assistance to human-touch & physical accessibility C
Slide 32: Term insurance
Term insurance New-age products for all consumers Women, Housewives & Salaried consumers NRI consumers Self-employed consumers Term Insurance Buyers Women Men 9% 12% 13% FY19 FY23 Q2 FY24 • Term insurance plans for housewives with ₹1 Cr Sum Assured • Special plans for women including Critical Illnes
Slide 33: Health Insurance
Health Insurance Catering to all insurance needs: Special products Consumers with Pre-Existing Diseases get Riders Senior Citizen Plans Day 1 Cover Room Rent Waiver Hospital Cash Benefit Critical Illness Cover Personal Accident Cover Global Health Coverage Special Maternity Plans OPD Care NCB protec
Slide 34: Health Insurance
Health Insurance Unbundled offers & personalized options Unbundled offers: Choose the features you want ! 34
Slide 35: Savings plans
Savings plans An assortment of offerings to suit all consumer needs Capital Guarantee Solutions Wealth + Health Solutions Guaranteed Plans with return higher than fixed / term deposit 35
Slide 36: Motor Insurance
Motor Insurance Usage based plans: Pay-As-You-Drive 36 36
Slide 37: Motor Insurance
Motor Insurance Consumer Connect: Tools & Reminders 1 2 3 4 37 37
Slide 38: A data & technology driven approach to change the insurance landscape
A data & technology driven approach to change the insurance landscape User friendly interface assisting customers throughout the lifecycle Fill-in customer details Compare products across insurers Self video inspection (Motor) Easy payment or Telemedical (Life / Health) process or upload docs Unique
Slide 39: Technology for consumers & insurers
A data & technology driven approach to change the insurance landscape Technology for consumers & insurers Customer Experience Layer Insurer Integration Layer Sales Journey • Quotes • Proposal / Underwriting Insurer • Issuance Internet Ecosystem APIs • Endorsement • Claims • Refunds • Cancellation Se
Slide 40: AI based risk framework used to detect fraud
A data & technology driven approach to change the insurance landscape AI based risk framework used to detect fraud Current Interactions Risk Score less than Cut-off Explicit •Website / M-site Price Variables Advantage •Tele / Video •Meeting Historical Interactions Lower claims Sent to the insurer fo
Slide 41: AI based risk framework used to detect fraud
A data & technology driven approach to change the insurance landscape AI based risk framework used to detect fraud 41
Slide 42: AI based risk framework used to detect fraud
A data & technology driven approach to change the insurance landscape AI based risk framework used to detect fraud Voice Matching Verification with Public Databases Voice biometrics of Pre-Issuance Video Call matched with sales call data 42
Slide 43: Customer Centricity is the key for us – reflective in 88% CSAT
Customer Centricity is the key for us – reflective in 88% CSAT Service Experience • Pre-fill KYC details using CKYC and eKYC integrations, a central system for multiple purchases • Medicals done at home enabled by insurer partners using dedicated Phlebotomists • Automated documentation and other pro
Slide 44: A wholesome experience in the App
A wholesome experience in the App Consumer Education Renewals Policy Management / Awareness 44
Slide 45: Claims Assistance: popularized through media campaigns
Claims Assistance: popularized through media campaigns 45
Slide 46: Claims Assistance
Claims Assistance On-ground dedicated assistance at the time of claims On-ground support in 114 cities Walk-in stores in 57 cities Dedicated relationship manager for online & offline support Free grief support programs For beneficiaries of term insurance in case of an unfortunate demise 46
Slide 47: Claims Grievance Redressal Day
Claims Grievance Redressal Day Claims Samadhan Diwas Real-time re-assessment of repudiated / rejected claims In a tripartite conversation with the insurance partner, consumer and Policybazaar Garnering consumer trust by assisting during the moment of truth – claims Receiving thousands of appreciatio
Slide 48: Claims Assistance
Claims Assistance Handy kit for claims Physical card sent to the customer, which they can safely keep with themselves or with the nominee 48
Slide 49: Awards & Recognition
Awards & Recognition Best Claim Support Initiative for Claim Samadhan Diwas Best BFSI Brand for PB Paap vs Ghor Paap Silver Feather Awards Prime Time Awards 3 winning entries out of 4 Best Insurance Broker Best use of consumer tech for PB Meet Indian Marketing Awards Banking Frontiers InsurTech Awar
Slide 50: paisabazaar
paisabazaar@®
Slide 51: Large, underpenetrated & growing retail lending industry
Large, underpenetrated & growing retail lending industry; digital growing faster Large Consumer Credit Market .. # ..is underpenetrated Household debt to GDP ratio^ 85% 63% 64% ~8.5 Lac Cr ~2.7 Cr Loans disbursed Credit Cards issued (Annualized) (Annualized) 15% India China USA UK Growing fast.. Con
Slide 52: Paisabazaar offering consumers wide choice & ease of comparison
Paisabazaar offering consumers wide choice & ease of comparison Solving structural problems by keeping consumer at the core Consumer Pain-points Paisabazaar Advantage Transparent & Neutral Comparison Difficult to find best offer Credit offers from 65+ partners Relevant Offers Rank-ordered Lack of tr
Slide 53: Paisabazaar: Platform of Choice for India’s credit needs
Paisabazaar: Platform of Choice for India’s credit needs Independent, unbiased & transparent platform with E2E assistance Best offers always, including Bank Pre-approved offers Industry-first SmartMatch algo to help find most relevant offers >15%* of India’s active credit score^ consumers on Paisaba
Slide 54: Paisabazaar: India’s largest comparison platform for credit products
Paisabazaar: India’s largest comparison platform for credit products India’s largest ~22 Lacs credit score awareness initiative Monthly Enquiries ~₹16,600 Cr (credit products) ^ Loan disbursals ARR* ~3.9 Cr ~19 Lacs Credit Score consumers^ ~5.8 Lacs Transactions ARR^ Credit Cards issued ARR* 22.4 La
Slide 55: Q2 disbursals @ 16,600 Cr ARR; Card issuance @ 5.8 Lacs cards ARR
Q2 disbursals @ 16,600 Cr ARR; Card issuance @ 5.8 Lacs cards ARR Disbursals (₹ Cr) Credit cards issuance (k) 40% CAGR in 6 years including covid year 34% CAGR in 6 years including covid year 16,600 585 59% last 2 years CAGR 89% last 2 years CAGR 466 11,619 COVID COVID 6,550 year 6,607 year 5,102 16
Slide 56: Adjusted EBITDA positive since Dec-22; consistently improving margins
Adjusted EBITDA positive since Dec-22; consistently improving margins Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 FY21 FY21 FY21 FY22 FY22 FY22 FY22 FY23 FY23 FY23 Dec-22 FY23 FY24 FY24 Improved processes, better offerings & higher conversions leading to sustainable margins Continued investments in brand
Slide 57: Building sustainable trail revenue, driven by co-created products
Building sustainable trail revenue, driven by co-created products Growing Trail Revenue; currently >14% of credit revenue Building trail revenue, accrued over a period of time, in addition to acquisition commissions Trail revenue improving robustness & margins for the business Steadily transitioning
Slide 58: Depth & width of product offerings across all credit segments
Depth & width of product offerings across all credit segments Helping drive economies of segmentation 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 58
Slide 59: MSME lending: Creating credit awareness & increasing inclusion
MSME lending: Creating credit awareness & increasing inclusion Self employed consumers constitute Increasing credit awareness among self- employed consumers 38% of new credit score acquisition; up from 33% in 2019 17% of credit enquiries ~20 partners including banks, NBFCs & MSME-focused finte
Slide 60: Driving India’s largest Credit Awareness Initiative
Driving India’s largest Credit Awareness Initiative FREE for Life Access to credit score from all with monthly updates 4 Credit Bureaus Digital process enabling Added 2 Vernacular ease of access Languages this FY English िहं दी मराठी ಕನ್ನಡ తెలుగు Hindi Marathi Kannada Telugu Tamil Bengali Segmentati
Slide 61: Credit Score Platform: Intelligent Analytics driven product innovation
Credit Score Platform: Intelligent Analytics driven product innovation Deeper analytics & segmentation-led X-sell Offers; ~3.9 Cr consumers have accessed credit score Driving strong revenue per consumer 3.9 Credit segmentation New to Credit Sub - prime Prime Super- prime 2.73 2.15 Sleepers 0.2X 0.6X
Slide 62: Helping Credit Impaired segments climb up the credit ladder
Helping Credit Impaired segments climb up the credit ladder Initiatives launched to enable credit Challenges faced by low score customers repairment 25%* users have poor credit score Expert Analysis of Credit Report - Personalized advise to build score - Not eligible for any Loan or Card - Credit Co
Slide 63: Digitization took off post-Covid; built Digital Stack to stay ahead
Digitization took off post-Covid; built Digital Stack to stay ahead Pre-COVID Since 2020 Physical, broken processes Ecosystem has taken decisive Paisabazaar built Digital Stack to plagued the industry steps towards digitization stay ahead of the curve Higher TAT + poor CX vKYC allowed for non F2F En
Slide 64: Digitization continues to grow: E2E digital transactions increasing
Digitization continues to grow : E2E digital transactions increasing 13 active partner journeys E2E digital Credit cards is moving fast; >75% transactions E2E digital Unsecured loans also showing good traction; ~50% transactions digital driven by STPL Q1 FY22 Q2 FY22 Q3 FY22 Q4 FY22 Q1 FY23 Q2 FY23
Slide 65: Digitization Case Study: Best-in-class CX with Credit Saison
Digitization Case Study : Best-in-class CX with Credit Saison using Digital Stack Seamless Process 1.Details Verification and Loan 2. KYC (Digilocker+ Liveliness & 3. Instant Loan Disbursal Offer Selection Selfie) 14.99% • E2E on PB platform – superlative experience for Real time Disbursal End-to-En
Slide 66: Co-created strategy driven by strong consumer needs/market gaps
Co-created strategy driven by strong consumer needs/market gaps Deepen lending ecosystem play and capture LTV Seamless Customer Expand the market Serving credit-starved segments Experience Innovation in Product Propositions solving consumer needs Higher LTV per Brand building customer Deeper engagem
Slide 67: Creating a comprehensive product suite across need/segment gaps
Creating a comprehensive product suite across need/segment gaps 1 co-created loan product launched this quarter; 7 products live till date Credit Card Offerings Loan Offerings Product Innovation - Duet Credit Card • Credit Card-cum-Line • Cashback on all spends NTC Expanding Supply - StepUp Credit C
Slide 68: Taking Brand Paisabazaar to every Indian household
Taking Brand Paisabazaar to every Indian household Part of world’s biggest sporting events on TV, OTT Men’s Cricket World Cup 19th Asian Games Asia Cup 2023 Ashes 2023 68
Slide 69: New initiatives
New initiatives
Slide 70: PB Partners
PB Partners Sustained market leadership & Increasing efficiency A platform for independent sellers of Insurance and other financial products Zone wise Share of business Enable sellers to sell across Products and Suppliers via an app Tech based platform for Research, Issuance, and Customer Mana
Slide 71: PB Partners
PB Partners First-in-industry tech initiatives Improving the breadth of product offerings, supported by sales training 71
Slide 72: PB Partners
PB Partners First-in-industry tech initiatives Simplified Consumer Life cycle management using the platform 72
Slide 73: PB Partners
PB Partners First-in-industry tech initiatives Self-help features: Endorsements, Cancellations & Refunds 73
Slide 74: UAE Operations
UAE Operations Premium Grew 155% YoY Insurance Premium (₹ Cr) Started operations in FY19 Focus on Health and Life insurance 155 Other Financial products also on the same platform Leadership position Loans (Personal, Car, Home) & 155% Credit cards Continued focus on protection against death, disease
Slide 75: END
END For any queries please email: investor.relations@pbfintech.in PB Fintech Limited Plot 119, Sector 44 Gurugram Haryana 122001