- Date : 14/04/2023
- Read: 3 mins
BankBazaar plans to go public within the next 12-18 months after experiencing a growth in net revenue for FY23 by 60% over FY22.
Despite facing rising interest rates and macro-economic pressures, the demand for credit in India has remained robust, with retail credit seeing a significant increase over the past year. According to BankBazaar, outstanding personal loans have risen to Rs. 37.7 trillion as of October 2022. The report, titled “Moneymood Retail Credit Trends”, revealed that bank personal loans grew by 20% to Rs. 37.7 trillion YoY, as of October 2022, indicating a strong post-pandemic recovery.
According to the report by BankBazaar, personal loans grew by 20% year-on-year to Rs. 37.7 trillion as of October 2022. This is a strong indication of the post-pandemic recovery and the resilience of the Indian economy. Furthermore, credit cards, particularly co-brands, experienced a tremendous year with outstanding credit cards doubling over a five-year period, reaching approximately 8 crore. Home loans grew by 16% year-on-year, despite the challenges posed by inflation and the ongoing Russia-Ukraine war.
BankBazaar To Go Public Soon
The growth in retail credit has also been fuelled by the increasing popularity of fintech companies in India. BankBazaar, a leading Indian fintech firm, announced its plans to go public within the next 12-18 months. The company's net revenue for FY23 was Rs 160 crore, and it is currently planning to raise a round of capital before its Initial Public Offering (IPO). ICICI Securties has been appointed to oversee this round of funding.
The decision to go public comes on the back of BankBazaar experiencing a growth in net revenue for FY23 by 60% over FY22. BankBazaar’s growth was driven by its digital-first, co-branded credit cards, which offer consumers the ability to track and improve their credit scores, access hundreds of no-cost EMIs every month, and earn digital rewards.
The market leader in co-branded credit cards in India, BankBazaar has also witnessed impressive growth overseas, with an established presence across Singapore, Malaysia, the Phillipines, Australia, and the UAE.
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The IPO Growth Story
The Indian capital markets have also demonstrated their resilience in the face of economic pressures. The number of initial public offerings (IPOs) has halved from 65 to 31 in 2022, but they have delivered a healthy average return of 32% to their subscribers. In 2022, only 31 IPOs have been listed, with more in the pipeline. Companies have raised Rs. 58,346 crore in 2022 through IPOs, compared to Rs. 1.31 lakh crore in 2021, with the average issue size of IPOs in 2022 coming down to Rs. 1,844 crore from Rs. 2,022 crore last year.
In conclusion, the Indian economy continues to display a strong demand for credit, particularly in the retail sector, despite facing economic pressures and inflation. The growth in retail credit is driven by the need for personal loans, home loans, and credit cards. BankBazaar decision to go public reflects the growing success of the fintech industry in India, which has developed innovative products and services that cater to a diverse consumer base. As the country continues on the path towards recovery, the demand for credit and investment opportunities is likely to increase, creating new avenues for growth and development.