Indian fintech company BankBazaar is exploring a potential majority stake sale as early investors look to partially or fully exit their investments, with several prospective buyers reportedly evaluating the opportunity. The Chennai-based financial services platform has held discussions with multiple companies, including SoftBank-backed payments infrastructure provider Juspay, although negotiations have yet to result in an agreement.
According to a report citing at least five people familiar with the developments, BankBazaar has been exploring different transaction structures as it seeks to bring in new investors and provide an exit opportunity to existing shareholders.
One of the people cited in the report said discussions with Juspay had taken place over the past few days but had not progressed. The potential interest is particularly notable because Juspay co-founder and CEO Vimal Kumar previously served as BankBazaar’s chief information officer (CIO) for approximately four years before leaving to establish the payments technology company in 2012.
Separately, Experian, an existing investor in BankBazaar, had explored investing additional capital and increasing its stake. However, those discussions also failed to produce a deal.
Credits: The Hindu
Investors seek exit at a discounted valuation
BankBazaar was last valued at approximately ₹1,600 crore, but the proposed transaction could involve a significant discount for existing shareholders looking to sell their holdings.
According to sources familiar with the discussions, the secondary share sale component could be priced at a discount of approximately 30-35% to the company’s previous valuation. This would translate into an indicative valuation of around ₹1,040-1,120 crore for the shares being sold.
The transaction is also expected to include a primary capital infusion, allowing the company to raise fresh funds for its operations and expansion. This component could be priced at a relatively smaller discount of approximately 10% to the previous valuation.
The proposed structure would therefore combine an investor exit with fresh capital for the business. Despite the potential change in ownership, the founders and existing management team are expected to continue running BankBazaar following the transaction.
The company’s investor base includes Peak XV Partners, Amazon, Eight Roads Ventures, The Walden International Group and Muthoot Fincorp, among others. Since its establishment in 2008, BankBazaar has raised more than $130 million, equivalent to approximately ₹1,200 crore.
Three categories of buyers exploring the opportunity
BankBazaar is reportedly considering interest from three broad categories of potential acquirers.
The first includes consumer fintech companies holding non-banking financial company (NBFC) licences, which could use the acquisition to strengthen their distribution networks and expand their financial services offerings.
The second category comprises private equity firms specialising in buyouts, while the third includes companies outside the consumer lending ecosystem that are looking to establish a presence in the segment.
The broad approach suggests that BankBazaar is open to different ownership structures rather than limiting the sale to companies already operating in digital lending.
A majority stake transaction could give a new investor significant influence over the business while allowing the existing founders and management to retain operational continuity.
BankBazaar improves financial performance as revenue grows
The potential stake sale comes as BankBazaar has expanded its business and improved its financial performance over recent years.
According to data from private markets intelligence provider Tracxn, the company’s revenue increased from approximately ₹69 crore in FY21 to ₹254 crore in FY25. During the same period, its losses narrowed from ₹58 crore to ₹23 crore.
The improvement indicates stronger revenue generation alongside efforts to control operating costs, potentially making the business more attractive to prospective buyers.
The proposed transaction is expected to conclude by March, although discussions remain ongoing and the final structure could change.
Credits: The Head and Tale
Fintech dealmaking gains momentum in India
BankBazaar’s potential ownership change comes amid renewed activity in India’s fintech investment market. According to Moneycontrol, at least six funding discussions have emerged across the sector in less than 45 days.
The activity spans digital lending, payments, wealth management, savings and financial infrastructure. Startups including Navi, Oolka, Bachatt, Vegapay, Rovia, TBX and CreditWise have either raised fresh capital or entered discussions with prospective investors.
Investment firms such as Prosus, Elevation Capital, Bessemer Venture Partners, Northpoint Capital, SIG, Flourish Ventures and Elev8 Venture Partners are among those actively exploring opportunities.
For BankBazaar, a successful transaction could provide early investors with an exit while bringing in a new controlling shareholder to support its next phase of growth. However, the outcome will depend on whether the company can secure a buyer at a mutually acceptable valuation.
