Bengaluru-based insurtech unicorn Acko’s net loss increased over 1.5X in the financial year ended March 31, 2023. The Amazon-backed insurtech startup incurred a loss of INR 738.5 Cr in the financial year 2022-23 (FY23), a 53% jump from INR 482.3 Cr in FY22, due to a rise in its expenses.
The startup’s total expenses jumped 38% to INR 2,535.3 Cr during the year under review from INR 1,835 Cr in FY22. One of the biggest contributors to the startup’s growing expenses was the claims it paid. Acko spent INR 801.4 Cr on paying claims in FY23, an increase of 67% from INR 479 Cr in the previous fiscal year.
Acko spent INR 363.7 Cr for premium on reinsurance ceded, a decline of 8.7% from INR 398.5 Cr in the previous year. Meanwhile, employee benefit expenses rose to INR 349.3 Cr from INR 183 Cr in the previous year. Employee benefit expenses comprise employee salaries, PF contributions, gratuity, among others. As per LinkedIn, Acko has around 1,200 employees.
Though the startup’s loss increased, its operating revenue also jumped during the year under review. Acko’s operating revenue rose 32% to INR 1,758.6 Cr in FY23 from INR 1,334.4 Cr in FY22. It earned around 67% of its operating revenue from premiums it collected from its customers.
Including other income, total revenue rose 30% to INR 1,758.6 Cr in FY23 from INR 1,352.5 in the previous year.
On a unit economics level, Acko spent INR 1.4 to earn every single rupee from operations.
Its EBITDA margin deteriorated to -40.5% in FY23 from -34.5% in the previous fiscal year.
Founded in 2016 by Varun Dua and Ruchi Deepak, Acko is a digital insurance policy provider. It entered the coveted unicorn club in 2021 after raising $255 Mn in Series D round led by General Atlantic and Multiples Private Equity Fund.
Acko, which sells automobile, health, and travel insurance on its platform, has raised around $458 Mn to date. The startup is also looking to foray into life insurance now.
Acko competes against the likes of Policybazaar, IPO-bound Digit Insurance, and InsuranceDekho, besides other established players like the LIC.
PB Fintech, the parent entity of Policybazaar, almost halved its net loss to INR 488 Cr in FY23 from INR 833 INR in FY22. Its operating revenue crossed the INR 2,500 Cr mark. Meanwhile, InsuranceDekho managed to reduce its net loss to INR 51.5 Cr in FY23, while operating revenue jumped to INR 96.4 Cr.
The post Acko Earned INR 1,759 Cr By Selling Insurance In FY23 appeared first on Inc42 Media.
