Etechaces Marketing and Consulting, the parent company of Policybazaar, the online portal for financial products has reported revenues of Rs 77.6 crore for period ending March 31, 2015. Expenses totalled to Rs 148.6 crore according to company’s filing with the registrar of companies, leaving a loss of Rs 71 crore.
For FY16, the portal is targeting revenues of Rs 100 crore.
The portal does a throughput of insurance premium to the tune of Rs 460-Rs 500 crore currently, according to Yashish Dahiya, CEO ,Policybazaar. On an average the portal clocks 50,000 transactions in a month. Dahiya said the portal earns a fee of 15-20% of the premium amount.
Policybazaar provides information across products such as medical, term life, travel or motor insurance, low prices ULIPS and other investment products. “We will achieve profitability by March 2019 and generate profits worth R100 crore by 2020,” Dahiya said.
The financial portal has 1,300-1,400 employees with the largest chunk of employees—1,000—working at the call centre and earning an annual salary of Rs 3-4 lakh. This is followed by 180 employees in technology, 70 in marketing and product and 30 in management. Of Rs 148.6 crore, the company spent Rs 52 crore on advertising and promotional expenses and Rs 74 crore on employee benefit expenses.
The company closed its latest funding raising in April 2015, where it mopped up $40 million from Premji Invest and others taking the total funding of the company to $410 million. Other investors include Tiger Global Management, Inventus Capital Partners, Ribbit Capital Portfolio Company, Steadview Capital Management, Temasek and ABG Capital. The latest valuation of the company stands at $210 million.
According to information on Insurance Regulatory and Development Authority of India, private sector had issued 57.37 lakh life insurance policies in FY15. A report by Google and The Boston Consulting Group said Rs 7,000-8,000 crore of new insurance sale in India are influenced by the digital platform. By 2020, Rs 110,000 to 120,000 crore of new insurance premiums will be led by digital.
Other financial web companies in the business include FinanceBazaar and BankBazaar. FinanceBazaar is focussed on disbursing loans within an average ticket size of Rs 1.5 lakh in the personal loan segment. BankBazaar is marketplace that provides access to loans, credit cards, and insurance.
