Income Tax officials quiz Paisabazaar, over 'Specific Vendors'

PB Fintech-owned Paisabazaar, a fintech unicorn, has undergone an inquiry by income tax officials regarding certain vendors, spanning two consecutive days. The company, in a filing to the exchanges on December 15, stated that it has provided the necessary information to the tax officials and will continue to offer any further details or information required in the future.

This development follows a recent fine imposed by the Securities Exchange Board of India (SEBI) on Paisabazaar amounting to Rs 1 lakh for employing Naveen Kukreja before he cleared the NISM exam. The filing from PB Fintech clarified that there is no business impact from the SEBI order, and the operations of Paisabazaar continue as usual.

PB Fintech reported a significant reduction in its consolidated loss at Rs 12 crore for the quarter ending June 2023, compared to the Rs 204 crore loss reported in the first quarter of the previous year. The credit business under Paisabazaar boasts an annualized run rate of Rs 16,000 crore disbursal, issuing 5.8 lakh credit cards on an annualized basis. Approximately 75% of its loan disbursals were to existing customers.

The income tax inquiry adds another layer of scrutiny to the fintech company's recent regulatory challenges. The company remains committed to cooperating with the authorities and providing the necessary information for the inquiry.