Insurtech startup Acko reports Rs 2,106 crore revenue in FY24; losses decline by 9.3%

Acko, a homegrown digital insurance provider, reported robust revenue growth for the fiscal year ending March 2024. 

The startup's total revenue reached Rs 2,106 crore, reflecting a 19.8% increase from Rs 1,758 crore in the previous fiscal year, Entrackr reported, citing the company's consolidated annual figures accessed from the Registrar of Companies.

Acko's income from gross premiums, which accounted for 73.35% of its total revenue, saw a notable 33.9% rise, hitting Rs 1,587 crore.

Additional earnings came from service contracts, recoveries from reinsurers, commissions, and investment income, bringing the company's overall revenue to Rs 2,160 crore, up from Rs 1,797 crore in FY23.

Reduction in losses amidst rising expenses

Alongside its revenue growth, Acko reduced its net losses by 9.3%, bringing them down to Rs 670 crore in FY24 from Rs 738.5 crore in FY23. This improvement came despite an increase in total expenditure, which rose to Rs 2,830 crore in FY24, up from Rs 2,535 crore in FY23.

Key factors contributing to this reduction in losses were controlled spending in areas such as employee benefits, advertising, and claims paid.

Acko, which was founded in 2016, targets profitability by FY27, with the health and general insurance segments expected to drive future gains.

Breakdown of costs

Acko’s expenses were led by claims paid, which accounted for 29.3% of total costs, remaining steady at Rs 830 crore for the fiscal year. Advertising and promotional expenses, however, increased to Rs 563 crore.

Other significant costs included employee benefits, commissions to selling agents, reinsurance premiums, and fees for information technology and legal services.

In July 2024, Acko acquired the digital chronic care management firm OneCare.