BankBazaar’s valuation hits Rs 1,982 Cr, outstanding losses mount to Rs 573 Cr in FY19

Many fintech startups in India have been complementing banks by becoming their customer acquisition channel. Companies such as Policybazaar, Paisabazaar and BankBazaar are helping banks disburse loans, credit cards, SIPs, mutual funds, et al.

While Policybazaar has established itself as a formidable player with envious scale and a towering valuation, companies such as BankBazaar have been growing steadily too. 

The Chennai-based company has now raised Rs 16.2 crore from its founder and CEO Adhil Shetty, Sequoia Capital, Gus Holdings, IYPE Isac and several individuals, according to its regulatory filings.

Shetty along with his brother Arjun Shetty has invested Rs 5.8 crore while early backer Sequoia has bought an additional stake worth Rs 2.6 crore in the company. 

Netherlands-based investment firm Gus Holdings has invested Rs 2.3 crore and existing investors Eight Roads Ventures poured in Rs 1.53 crore in this tranche. Senior officials including CDO Iype Isac and CTO Murari Sridharan invested Rs 2,5 crore combined. Besides this, a clutch of HNIs also picked up a stake in the company. 

According to Entrackr’s back of the envelope calculation, BankBazaar value would now come up to Rs 1,982 crore ($280 million). Queries sent to the company remained unanswered until the story was published. We will update the post as and when they respond.

Following this fresh financing round, Sequoia Capital now holds about 20.18% stake in the company. Amazon owns about 16.37% while Walden has 15.19%. Gus Holdings and Eight Roads Ventures have 9.8 and 4.27% ownership, respectively.

While the company had projected to achieve profitability in the ongoing fiscal, its FY19 figures paint a completely different picture. During FY19, BankBazaar had a net loss of Rs 169.2 crore with negative operating cash flows amounting to Rs 133.28 crore. 

BankBazaar’s auditor also pointed out its accumulated losses of Rs 572.6 crore and cited that due to these conditions, a material uncertainty exists that may cast significant doubt on the group’s ability to continue as a going concern.