Insurtech unicorn Acko reports 44% spike in losses
The company’s revenue from operations was up by 134% from Rs 488 crore previously to Rs 965.8 crore, outpacing the rise in expenses.
Bengaluru-based digital insurance provider Acko General Insurance’s net loss increased by over 44% to Rs 551 crore in the financial year FY23 from Rs 382 crore in FY22 even as the operating revenue more than doubled.
The company’s revenue from operations was up by 134% from Rs 488 crore in FY22 to Rs 965.8 crore, according to the company’s annual report.
The growth in the revenue was outpaced by the jump in expenses which were up by 74% to Rs 1,517 crore in FY23.
The company said that it delivered Rs 1,509 crore worth of Gross Written Premium (GWP).
Founded in 2016 by Varun Dua and Ruchi Deepak, Acko General Insurance operates as a subsidiary of Acko Technology and Services Pvt Ltd. The company offers multiple insurances in multiple spaces, including car, motor, group health, retail health, equipment, electronics etc.
“The embedded business lead growth with 171% followed up by the motor business by 34% and health business by 23%. At the end of the year, the company could also maintain a healthy solvency ratio of 2.75 times,” it added.
Backed by investors like General Atlantic, Multiples PE, CPPIB, Lightspeed Growth, Intact Ventures and Munich Re Ventures, Acko is gearing up for its entry into the life insurance space in the near future.
In April, the Insurance Regulatory and Development Authority of India (IRDAI) granted the license to commence business in life insurance.
According to a March report by Techcrunch, the company was in late-stage discussions to secure a $120 million funding round led by General Atlantic, valuing the startup at $1.5 billion.
Edited by Affirunisa Kankudti