Acko FY24: Revenue Crosses Rs 2,000 Cr Mark, Losses Cut By 9%

Acko’s revenue rose by 19.8% to Rs 2,106 crore in FY24, from Rs 1,758 crore in FY23, as per its consolidated annual reports obtained from the Registrar of Companies.

For the digital insurance company, the share of income from direct premium collections stood at 73.35% of its total earnings, indicating a 33.9% rise to Rs 1,587 crore over the last financial year.

Income from service contracts, recoveries from reinsurers, commissions, interest from investments, and other incidental income contributed to a total revenue of Rs 2,160 crore in FY24, marking a 20% rise from Rs 1,797 crore in FY23.

The cost of claims paid in FY23 accounted for 29.3% of total expenditures, which remained constant at Rs 830 crore in FY24. The next highest category of expenses was advertising and promotional activities, which saw an increase to Rs 563 crore in FY24.

The total expenses amounted to Rs 2,830 crore in the year under review, up from Rs 2,535 crore in FY23.

Reductions in expenses related to employee benefits, advertising, and claims paid by Acko led to a decrease in losses by 9.3% to Rs 670 crore in FY24, from Rs 738.5 crore in FY23. Although the ROCE and EBITDA margins improved, they remained negative at -35.2% and -30.1%, respectively. On a per-unit basis, Acko spent Rs 1.34 to generate a rupee in FY24.

Earlier in the year, Acko’s founder, Varun Dua, mentioned the company’s goal to achieve profitability by the fiscal year 2027, with the positive performance of its general and health insurance divisions being a key driver. Its competitor, Digit Insurance, was recently listed on the stock exchange and reported over Rs 1,800 crore in revenue in Q1 FY25.

To date, Acko has secured over $458 million in funding, including a $255 million unicorn round led by General Atlantic in October 2021. General Atlantic is the leading external investor with a 10.7% stake, followed by Accel Partners and Elevation Capital.