Insurtech firm Acko's revenue jumps to Rs 2,837 crore in FY25; net loss falls to Rs 424 crore

Acko has extended its growth streak into FY25, recording a 35% rise in operating revenue while sharply cutting its losses for the year. The insurtech platform posted Rs 2,837 crore in operating revenue, up from Rs 2,106 crore in FY24, according to media reports.

The company’s total income rose to Rs 2,887 crore in FY25 from Rs 2,160 crore a year earlier. Gross premium earned continued to be its largest contributor, accounting for 73.5% of total income and rising 31% to Rs 2,085 crore. The remaining income came from service contracts, recoveries from reinsurers, commissions, interest from investments, and other sources.

Acko managed to bring down its consolidated net loss by 37% to Rs 424 crore in FY25 from Rs 670 crore in the previous year. The improvement came from stronger revenue and tighter spending. Its EBITDA loss narrowed to Rs 404 crore, and EBITDA margin improved to minus 14% from minus 31% in FY24.

Total expenses rose 17% to Rs 3,312 crore in FY25 compared to Rs 2,830 crore last year. Employee benefit costs fell slightly to Rs 334 crore, while advertising expenses dropped 12% to Rs 497 crore. At the same time, commissions to sole selling agents increased 35% to Rs 283 crore.

A significant share of its expenses remained in the miscellaneous category, largely claims paid, reinsurance premiums, and administrative costs, which reached Rs 2,006 crore in FY25. The company ended the year with Rs 1,798 crore in current assets, including Rs 28 crore in cash and bank balance.

Acko, founded in 2016 by Varun Dua and Ruchi Deepak, sells motor, health, and travel insurance and entered the life insurance category last year. It has raised more than $458 million so far.

The company continues to face regulatory pressure from the Insurance Regulatory and Development Authority of India. IRDAI has rejected Acko’s requests for relaxation from the Expenses of Management limits and asked the insurer to submit quarterly projections until March 2026. A revised proposal to meet compliance by Q4 FY27 was turned down by the regulator, which reiterated the FY26 deadline.

Earlier this year, IRDAI imposed a penalty of Rs 1 crore on Acko for payments made to Ola Financial Services during FY20 and FY21, which the regulator said were effectively rewards for soliciting insurance without the required licence.