Acko, which is a New-age insurance firm, has shown a steady and consistent growth over recent years, and has surpassed the INR 2,000 crore revenue threshold in the fiscal year which ended March 2024. The company has also reduced its losses by 9 percent at the same time, bringing them below Rs 700 crore. Furthermore, according to its consolidated annual figures accessed from the Registrar of Companies, Acko’s revenue has increased by 19.8 percent to Rs 2,106 crore in FY24, an increase from INR 1,758 crore in FY23.

As a digital insurance provider, income from gross premium earnings has accounted for 73.35 percent of total income, showcasing a 33.9 percent growth to INR 1,587 crore during the last fiscal year. Service contracts, recoveries from reinsurers, commissions, interest income from investments, and other miscellaneous income brought total revenue to INR 2,160 crore in FY24, witnessing an upsurge from INR 1,797 crore back in FY23.

Also to note, the claims paid in the previous fiscal year accounted for 29.3% of total expenses in terms of cost breakdown and has remained steady at INR 830 crore in FY24. Moreover, advertising and promotional costs were the next largest overhead which witnessed an upsurge to reach INR 563 crore in FY24.

Also to note, total expenditure reached Rs 2,830 crore in FY24, compared to Rs 2,535 crore in FY23 due to parameters including employee benefits, commissions to selling agents, reinsurance premiums, information technology, legal/professional fees, and other expenses brought.

The controlled costs in employee benefits, advertising, and claims paid helped Acko reduce its losses by 9.3 percent to INR 670 crore in FY24. This was lower when compared to FY23 which stood at INR 738.5 crore. Additionally, ROCE and EBITDA margin also improved and remained negative at -35.2 percent and -30.1 percent, respectively. And if we look at the per-unit basis, Acko spent INR 1.34 to earn a rupee in FY24.

Varun Dua, Founder at Acko stated that the firm’s mission is to achieve profitability by FY27, which will be steered by its general and health insurance segments turning positive. Its competitor, Digit Insurance was recently listed on the stock exchange. The latter firm has posted more than INR 1,800 crore revenue in Q1 FY25.

Acko has raised over USD 458 million, including a USD 255 million unicorn round led by General Atlantic in October 2021 till date. According to TheKredible, General Atlantic is the largest external stakeholder with a 10.7 percent stake and is followed by Accel Partners and Elevation Capital, respectively.