The key numbers driving PolicyBazaar’s IPO plans

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Hi readers,

Have you ever watched Whose Line Is It Anyway? It’s an improv comedy show from the 2000s that’s so good, I still occasionally look up YouTube clips to have a laugh.

(Colin Mochrie’s my favorite, hands down.)

I don’t know much about improv comedy myself, but I do know about the “yes, and…” rule of thumb, which involves a participant taking what another has said and expanding or continuing that line of thinking. It keeps things flowing and turns mundane scenarios into hilarious ones.

PolicyBazaar seems to be taking such an approach to its listing plans, saying “yes” to Zomato’s initial public offering and potentially following that up with a larger one of its own. Our premium story looks at how PolicyBazaar is doing that.

(P.S. I sincerely apologize for this train of tortured logic.)

Today, we look at:

• The keys to a successful IPO, PolicyBazaar style
• AirAsia’s latest acquisition
• Other newsy highlights such as funding updates from an Indonesian last-mile logistics startup and a Chinese autonomous vehicle firm

PREMIUM SUMMARY

How PolicyBazaar is gearing up for its big splash in the public pool

Combining growth with profitability sounds like a surefire way to impress investors and drum up a strong response to your IPO. That’s exactly what PolicyBazaar is trying to do. Unfortunately, it didn’t quite hit profitability, but it continues to make strides toward cutting its expenses and getting closer to that goal.

• Half off: According to the filings, PB Fintech, which controls both PolicyBazaar (its insurance business) and PaisaBazaar (its lending arm), has cut its losses by half to 1.5 billion rupees (US$20 million) in FYE 2021, down from about 3 billion rupees (US$40.9 million) in the previous year.
• EBITDA on the up: PB Fintech has also witnessed an upward trend in its adjusted EBITDA (earnings before interest, tax, depreciation, and amortization) margins over the last three financial years. The metric improved from negative 39.3% in FYE 2020 to negative 6.9% in FYE 2021. For comparison, Zomato’s adjusted EBITDA margin in FYE 2021 – the food delivery firm’s last financial year before its listing – was deeper in the red at negative 11.6%.
• All according to plan: PB Fintech has plans to have a larger footprint in India through cross-selling and upselling and could be expanding to Southeast Asia in the next three years.

Read more: 7 insights into PolicyBazaar’s prospects for profitability from its IPO filings

STARTUP SPOTLIGHT

Beam me (and my food) up, Scotty

Behind the idea that spawned a multimillion-dollar business