Acko Reports 35% Revenue Growth in FY25

Following a 20% increase year-on-year in FY24, Acko, the insurtech platform, maintained its positive trajectory with a remarkable 35% growth in revenue for FY25. Concurrently, the company managed to reduce its losses by 37% during the same timeframe. According to consolidated annual figures sourced from the Registrar of Companies (RoC), Acko’s revenue from operations soared to Rs 2,837 crore in FY25, up from Rs 2,106 crore in FY24.

The digital insurance provider saw income from gross premiums earned account for 73.5% of its total revenue, climbing 31% to Rs 2,085 crore in the last fiscal year. Service contracts, recoveries from reinsurers, commissions, interest generated from investments, and various other forms of income collectively elevated the total revenue to Rs 2,887 crore in FY25, an increase from Rs 2,160 crore in FY24.

Cost Breakdown and Expense Management

In terms of cost analysis, employee benefit expenses experienced a minor decline of 6%, settling at Rs 334 crore in FY25, down from Rs 355 crore in FY24. This category represented 10% of the company’s overall costs. Additionally, the firm reduced its advertising expenditure by 12%, bringing it down to Rs 497 crore. Conversely, commissions paid to sole selling agents rose by 35%, reaching Rs 283 crore in the previous fiscal year.

A considerable portion of Acko’s costs fell under miscellaneous expenses, which primarily included claims paid, premiums on reinsurance ceded, alongside other office and administrative costs. This miscellaneous category totalled Rs 2,006 crore in FY25. Overall, the total expenses for the Accel-backed company increased by 17%, amounting to Rs 3,312 crore in FY25, compared to Rs 2,830 crore in FY24.

Financial Performance and Future Prospects

With a stronger top-line performance and tighter management of costs, Acko succeeded in slashing its losses by 37%, resulting in a figure of Rs 424 crore for FY25. Its return on capital employed (ROCE) and EBITDA margin showed improvement, reaching -30.5% and -16% respectively. Acko reported spending Rs 1.17 to earn a single rupee during FY25. At the conclusion of FY25, the company’s current assets were valued at Rs 1,798 crore, which included Rs 28 crore in cash and bank balance.

As per various reports, Acko has successfully raised over $458 million to date. General Atlantic holds the title of the largest external shareholder with a 10.7% stake, followed by Accel Partners and Elevation Capital. Meanwhile, Acko’s competitor, Digit Insurance, disclosed an operating revenue of Rs 2,088 crore in Q2 FY26, alongside a 30% surge in profit after tax to Rs 116.5 crore during the same time period.