The General Atlantic-backed insurtech startup incurred a total loss of INR 382.3 Cr in FY22
ACKO’s revenue from operations rose to INR 988.2 Cr in FY22 from INR 422.3 Cr in FY21
Total expenses rose to INR 1,470 Cr in FY22, a 2.4X jump from INR 608 Cr in FY21
Bengaluru-based insurtech startup ACKO’s net loss increased 3X to INR 382.3 Cr in the financial year 2021-22 (FY22) from INR 132.5 Cr in FY21 as the growth in its revenue was outpaced by the jump in expenses.
The startup, which entered the unicorn club last year, saw its revenue rise 129% to INR 1,087.5 Cr during the year from INR 475.3 Cr in FY21.
The General Atlantic-backed startup’s revenue from operations stood at INR 988.2 Cr in FY22 as against INR 422.3 Cr in FY21. Most of its operating revenue in FY22 came from the sale of health insurance products.
In FY22, ACKO generated INR 401.5 Cr through the sale of health insurance products as against INR 364 Cr through Motor TP insurance. Sale of Motor OD insurance helped ACKO earn INR 147 Cr. In comparison, Motor TP insurance was the highest revenue generator at INR 188.8 Cr in FY21, followed by health insurance at INR 118.3 Cr.
Surge In Expenses
ACKO’s total expenses jumped 2.4X to INR 1,470 Cr in FY22 from INR 608 Cr in FY21 on the back of a sharp rise in its employee benefit expenses. Employee expenses more than doubled to INR 102 Cr from INR 45 Cr in the previous year
Employee benefit expenses usually comprise employee salaries, PF contribution, gratuity, and other employee welfare benefits. The significant jump in employee benefit expenses is also an indicator that the startup increased its employee headcount in FY22.
ACKO’s other expenses also jumped to INR 1,363.4 Cr from INR 608 Cr in FY21. While the startup did not give a breakup of other expenses, they usually include insurance claims and commissions associated with it, among others. The startup spent INR 436.7 Cr on insurance claims.
ACKO entered the unicorn club last year after raising $255 Mn in Series D round at a valuation of $1.1 Bn. The funding round was led by General Atlantic and Multiples Private Equity Fund. The round also saw participation from Canada Pension Plan Investment Board, Lightspeed among others.
ACKO has raised $450 Mn till date and counts investors such as Amazon, Accel, Elevation Capital, and Binny Bansal among its backers. It competes with the likes of Digit Insurance and Policybazaar. According to an Inc42 report, India’s insurtech market is expected to have a size of $339 Bn by 2025, growing at a CAGR of 57% during 2021-25.