ACKO’s consolidated net loss declined 9% year-on-year to INR 669.98 Cr in FY24
Operating revenue surged 20% to INR 2,106.25 Cr in FY24 from INR 1,758.64 Cr in FY23
EBITDA loss declined to INR 650.2 Cr during the year under review from INR 728.6 Cr in FY23
Bengaluru-based insurtech unicorn Acko
ACKO’s operating revenue crossed the INR 2,000 Cr mark in the year ended March 31, 2024. The digital insurance policy provider clocked sales of INR 2,106.25 Cr in FY24, a 20% jump from INR 1,758.64 Cr in the previous year.
Including other income of INR 53.95 Cr, total revenue shot up 20% to INR 2,160.20 Cr during the year under review from INR 1,796.81 Cr in FY23.
The digital insurance policy provider reported an EBITDA loss of INR 650.2 Cr in FY24 compared to an EBITDA loss of INR 728.6 Cr a year ago. As a result, the EBITDA margin improved 10 percentage points to -31% during the year under review, compared to -41% in the previous year.
Founded in 2016 by Varun Dua and Ruchi Deepak, ACKO sells automobile, health, and travel insurance on its platform. The startup also forayed into the life insurance space last year.
ACKO raised $255 Mn in its Series D round, led by General Atlantic and Multiples Private Equity Fund, in 2021 at a unicorn valuation. The startup has raised a total funding of $458 Mn to date.
ACKO competes against the likes of Policybazaar, Go Digit, and InsuranceDekho, besides other established players like the LIC in India’s insurance sector.
Breakdown Of Operating Revenue
Being a digital-first insurance policy company, ACKO primarily earns revenue from the premium it collects from policyholders for protection against risk. Gross premium income stood at INR 1,586.77 Cr in FY24, up 32% from INR 1,184.95 Cr in the previous year.
Another source of revenue for ACKO is recoveries from reinsurers. ACKO reported a 26% decline in recoveries from reinsurers to INR 292.93 Cr in FY24 from INR 398.29 Cr in FY23.
The insurtech startup also earns revenue from service contracts, commission fees, and investments.
Zooming Into Expenses
Amid a strong growth in its operating revenue, ACKO saw a 12% increase in its overall expenditure to INR 2,830.18 Cr in the year ended March 2024 from INR 2,535.36 Cr last year.
Miscellaneous Expenses: This was the biggest expense head for ACKO during the year under review. The spending under this head rose over 4% to INR 1,519.14 Cr in FY24 from INR 1,452.76 Cr in the previous year.
This largely comprised call centre charges of INR 32.51 Cr, claims paid worth INR 829.83 Cr, gross change in claims outstanding during the year to the tune of INR 267.80 Cr, and premium on reinsurance receded of INR 363.75 Cr.
Employee Benefit Expenses: Employee costs remained largely unchanged at INR 354.63 Cr during the year under review compared to INR 349.34 Cr in FY23. However, employee share-based payment (ESOP) expenses declined 2.4X to INR 36.63 Cr in FY24 from INR 87.22 Cr in the previous year.
Advertising Promotional Expenses: ACKO saw a marginal rise in its business promotion expenses to INR 562.73 Cr in FY24 from INR 559.20 Cr a year ago.