In a remarkable demonstration of the growing digital financial services sector in Tamil Nadu, PB Fintech Ltd., the parent company of leading insurance marketplace Policybazaar and lending platform Paisabazaar, has reported a substantial 92% year-on-year increase in net profit for the third quarter of fiscal year 2025. This strong performance underscores the company’s successful penetration into South Indian markets, particularly Tamil Nadu’s burgeoning insurance sector.
The company’s revenue from operations witnessed a robust growth of 48.3% year-on-year, reaching Rs 1,291.62 crore, while maintaining effective cost management strategies. This performance reflects the increasing adoption of digital insurance and lending products in the region, with Tamil Nadu emerging as a key market for the company’s expansion plans.
The stellar quarterly results were primarily driven by the company’s insurance premium business, which recorded Rs 6,135 crore in total premiums, representing a 44% year-on-year growth. Notably, new health and life insurance premiums grew by 47%, indicating strong market penetration in Tamil Nadu’s tier-2 and tier-3 cities, where digital insurance adoption has been rapidly increasing.
“The strong growth in our insurance premium business, particularly in markets like Tamil Nadu, validates our strategic focus on digital distribution and customer-centric approach,” said a senior executive from PB Fintech. “We’re seeing significant traction in health and life insurance products, which aligns well with the increasing insurance awareness in South Indian markets.”
While the company faced headwinds in its credit business, with an 18% year-on-year decline in credit revenue due to industry-wide slowdown, its newly launched secured lending business has shown promising results. The secured lending segment, initiated in Q2 FY25, has already facilitated Rs 2,570 crore in loan disbursals and generated Rs 24 crore in revenue during Q3.
The company’s renewal and trail revenue achieved an impressive annualized run rate of Rs 665 crore, marking a 46% increase from the previous year. This recurring revenue stream is particularly significant for sustaining long-term profit growth and maintaining market leadership in key regions like Tamil Nadu.
The company’s performance in Tamil Nadu reflects the state’s growing prominence in India’s fintech ecosystem. Local industry expert Dr. Ramesh Kumar, Director of the Chennai Fintech Forum, notes, “PB Fintech’s strong performance in Tamil Nadu demonstrates the state’s readiness for digital financial services. The high adoption rates we’re seeing here are encouraging more fintech companies to establish their presence in the region.”
The company’s international operations, particularly in the UAE, have also shown strong momentum with 58% year-on-year growth. This global expansion provides valuable insights and best practices that can be implemented in emerging markets like Tamil Nadu.
Despite ongoing regulatory challenges, including GST and income tax investigations of its subsidiary Paisabazaar, the company maintains that these matters are not expected to materially impact its operations. The management’s transparent handling of these regulatory matters has helped maintain stakeholder confidence.
For Tamil Nadu’s startup ecosystem, PB Fintech’s success serves as a blueprint for scaling digital financial services. The state’s robust IT infrastructure, skilled workforce, and supportive regulatory environment have created favorable conditions for fintech innovation and growth.
Looking ahead, PB Fintech’s strong performance signals positive prospects for Tamil Nadu’s fintech sector, potentially attracting more investments and encouraging local startups to explore opportunities in digital insurance and lending services.
