Philippine-based BNPL (Buy Now, Pay Later) and consumer finance startup BillEase achieved profitability in 2023.
This was driven by robust growth in its customer base and a significant expansion in merchant partnerships, according to regulatory filings.
Jin Chan Invest, the Singapore-registered parent company of BillEase, reported a net profit of US$5.95 million for the year ending 31 December 2023, marking a sharp turnaround from a net loss of US$342,364 recorded the previous year.
As reported by DealStreetAsia, the company’s revenues soared by 75%, reaching US$55.29 million, compared to US$31.52 million in 2022.
Additionally, gross profit experienced substantial growth, rising to US$44.98 million from the US$27.03 million achieved in the prior year.
BillEase generated revenue from various streams, including US$42.7 million in interest income, US$10.57 million in loan processing fees, and US$2.02 million from penalties on loans receivable.
By May 2023, the startup had acquired around 1.3 million customers, with over 400,000 new users joining in that year alone.
CEO Georg Steiger credited the company’s success to multiple factors, including new customer acquisitions, increased credit usage, innovative product offerings, and the expansion of merchant partnerships.
The number of merchants utilising BillEase’s services more than tripled, growing from over 3,000 in 2022 to more than 10,000 in 2023.
Additionally, the company partnered with Alipay+ to facilitate international transactions for its customers.
However, despite the strong financial performance, BillEase experienced a significant increase in operating expenses.
Administrative and other operating costs grew by 40% to US$36.3 million, driven largely by a 77% rise in bad debt expenses, which totaled US$22.7 million.
The company also allocated US$5.82 million to cover potential losses from accounts receivables and incurred US$2.87 million in taxes and licenses.
Interest expenses on borrowings surged nearly fourfold to US$5.37 million.
BillEase’s growth has been supported by key financial partners, including Singapore-based fintech lender Helicap and London’s automated lending platform Lendable.
In the fourth quarter of 2022, BillEase secured US$20 million debt facilities from both Helicap and Lendable.
Earlier, it raised US$11 million in a Series B funding round led by Burda Principal Investments, the growth capital arm of Huber Burda Media.
In April 2024, the company obtained an additional US$5 million from Saison Investment Management Private Limited.
As of the end of 2023, BillEase’s cash and cash equivalents stood at US$7.56 million, a 2.7x increase from the previous year.
The company reported total assets of US$65.16 million and liabilities of US$58.70 million.
Positive operating cash flow before changes in working capital was recorded at US$44.51 million.
Looking ahead, BillEase plans to introduce new features, such as QRPH for in-store payments and NFC (tap-and-go) capabilities.
Steiger also mentioned that the company is exploring further equity funding opportunities to enhance its balance sheet and drive future growth.
