Bengaluru-based digital insurance provider Acko General Insurance has reported a net loss of over Rs 551 crore in the financial year FY23, marking a significant increase of more than 44% from Rs 382 crore in FY22. Interestingly, despite this rise in losses, the company’s operating revenue more than doubled during the same period.
According to Acko’s annual report, the company’s revenue from operations surged by an impressive 134%, rising from Rs 488 crore in FY22 to Rs 965.8 crore in FY23. However, this revenue growth was outpaced by a substantial increase in expenses, which rose by 74% to reach Rs 1,517 crore in FY23. The company also highlighted that it delivered Gross Written Premium (GWP) worth Rs 1,509 crore.
Established in 2016 by Varun Dua and Ruchi Deepak, Acko General Insurance operates as a subsidiary of Acko Technology and Services Pvt Ltd. The company provides various insurance products across multiple domains, including car, motor, group health, retail health, equipment, electronics, and more.
A statement from Acko noted, “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.”
Backed by prominent investors such as General Atlantic, Multiples PE, CPPIB, Lightspeed Growth, Intact Ventures, and Munich Re Ventures, Acko is poised to enter the life insurance sector in the near future. In April, the Insurance Regulatory and Development Authority of India (IRDAI) granted Acko 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, potentially valuing the startup at $1.5 billion.
