BankBazaar Secures Fresh Funding in Series D Round

BankBazaar, a prominent online marketplace for financial products headquartered in Chennai, has successfully secured fresh funding in its ongoing Series D round. This marks the company’s first investment round of 2024.

Details of the Funding

The company’s board of directors approved the issuance of up to 22,821 Series D2 compulsorily convertible preference shares (CCPS) at an issuance price of Rs 3,727 each. This issuance translates to a total funding amount of Rs 80 crore (approximately $9.6 million) through private placement. Public filings accessed from the Registrar of Companies (RoC) confirm this information.

The earmarked funds will be utilized by BankBazaar to address various capital requirements, fuel expansion initiatives, and propel overall growth. As per available records, the company has already received Rs 46.35 crore in three separate tranches, with the remaining amount expected to arrive shortly.

Additional Funding Secured Through Debt Instruments

Beyond the equity infusion, BankBazaar, a company backed by Peak XV Partners, has also secured an additional Rs 50 crore through the issuance of non-convertible debentures (NCDs) and convertible share warrants. Vistra ITCL (India) Limited is identified as the source of this debt financing in a separate regulatory filing.

Company Valuation and Business Model

Market data platform TheKredible estimates BankBazaar’s post-allotment valuation to be around $217 million. The company operates as a co-branded credit card issuer, allowing users to check their credit scores and facilitating cross-selling of third-party loan and insurance products. BankBazaar’s website reveals partnerships with over 50 banks, catering to a customer base exceeding 50 million.

Financial Performance and Funding History

Established 15 years ago, BankBazaar has garnered over $110 million in total funding to date. Investors in the company include prominent names like Amazon, GUS Holdings, Walden Investments, and Eight Roads. While the company claims to have achieved profitability (break-even) with a revenue of Rs 250 crore in fiscal year 2024 (FY24), its operating revenue for FY23 witnessed a significant increase of 65.6%. Revenue figures jumped from Rs 96 crore in FY22 to Rs 159 crore in FY23. However, the company also reported losses of Rs 27 crore during FY23.