Acko is an online insurance service startup that announced a 19.8 percent increase in operational revenue to Rs 2,106 crore in FY24. The startup provides a multi-category digital insurance platform for users and management solutions for businesses and individuals. The service contracts and insurance services are the company’s major source of revenue. The Acko is a digital full-stack insurance company that is fully licensed and controlled by regulatory authorities. 

Entrackr mentioned in its report that the firm also earns revenue through commissions and interest income from investments. The income from gross premium amounted to 73.35 percent and increased by 33.9 percent to Rs 1,87 crore during the last financial year. The claims paid in FY23 accounted for 29.3 percent of the total expenses and stood at Rs 830 crore in FY24. The company has secured over 458 million USD across multiple funding rounds since its inception, including the $255 million raised from the firm’s existing investor General Atlantic in 2021. The data intelligence platform, crunchbase mentioned that the firm has raised the amount across three acquisitions and one investment round. 

The insurance firm provides users with insurance on various categories including life and non-life related things. The online platform provides users with different non-life product-related insurance including auto insurance, business products, and health service-related insurance. The employee benefits decreased compared to the last financial year in FY24. The employee benefits, reinsurance premium, information technology, commissions to selling agents, legal, and other expenses increased the total cost to Rs 2,830 crore in this financial year. The total expenditure of the firm increased by 11.6 percent to Rs 2,830 crore in the same duration.

The insurance service offering firm posted a 9.3 percent decrease in its losses to Rs 670 crore in this fiscal year. The increased insurance sales and cost control management helped the company reduce its losses for this financial year. The startup data intelligence platform, thekredible mentioned that the General Atlantic remains the largest external stakeholder of the company with 10.7 percent of the total stake. The EBITDA margin also stood at -30.10 percent while the ROCE was around -35.23 percent. Acko faces competition from other insurance service platforms such as Policy Bazaar, Digit Insurance, and Go Digit.

Conclusion:

The online insurance service offering platform announced a 19.8 percent increase in its operational revenue to Rs 2,106 crore in FY24. This online platform provides general and non-life products insurance policies including car, health, and business products insurance. These insurance services, commissions, and interest income from investments are the firm’s primary sources of revenue. The loss also saw a 9.3 percent decrease to Rs 670 crore in FY24. The total expenditure of the firm saw an increase of 11.6 percent and crossed Rs 2,830 crore in the same duration. The legal, reinsurance premiums, employee benefits, and other expenses brought total expenditure to Rs 2,830 crore. The company has secured over 458 million USD across multiple funding rounds to date.