In the bustling world of fintech, one name is making waves: BillEase. This Philippine-based BNPL (Buy Now, Pay Later) and consumer finance startup has not only achieved profitability in 2023 but has also set a new benchmark for growth and innovation in the industry.
A Turnaround Tale
From a net loss of US$342,364 in 2022 to a net profit of US$5.95 million in 2023, BillEase’s financial journey is nothing short of spectacular. The parent company, Jin Chan Invest, reported a 75% surge in revenues, reaching US$55.29 million. This remarkable growth is a testament to the company’s robust strategy and execution.
Customer and Merchant Boom
By May 2023, BillEase had amassed a customer base of 1.3 million, with over 400,000 new users joining in that year alone. The number of merchants utilizing BillEase’s services more than tripled, skyrocketing from over 3,000 in 2022 to more than 10,000 in 2023. This explosive growth in both customers and merchants underscores the platform’s appeal and reliability.
Diverse Revenue Streams
BillEase’s revenue streams are as diverse as they are lucrative. The company generated 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. This diversified income model has been pivotal in driving the company’s profitability.
Rising Costs and Strategic Investments
Despite its strong financial performance, BillEase faced a significant increase in operating expenses. Administrative and other operating costs grew by 40% to US$36.3 million, largely due to 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.
Financial Backing and Future Plans
BillEase’s growth has been bolstered 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 in debt facilities from both Helicap and Lendable. Earlier, it raised US$11 million in a Series B funding round led by Burda Principal Investments. 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.
Innovative Future
Looking ahead, BillEase plans to introduce new features such as QRPH for in-store payments and NFC (tap-and-go) capabilities. CEO Georg Steiger also mentioned that the company is exploring further equity funding opportunities to enhance its balance sheet and drive future growth.
Wrapping Up
BillEase’s journey from a loss-making entity to a profitable powerhouse is a story of strategic vision, robust execution, and relentless innovation. As it continues to expand its customer base and merchant partnerships, BillEase is poised to remain a dominant player in the Philippine fintech landscape.
Stay tuned in Your Ledger, because BillEase is just getting started.
