Acko Reports Record Revenue Growth in FY25
Insurtech giant Acko has stunned the industry with a stellar performance in FY25, posting operating revenue of Rs 2,837 crore, up 35% from Rs 2,106 crore in FY24. The company’s total income also climbed to Rs 2,887 crore, reflecting strong growth across multiple segments.
Gross Premium Remains the Backbone
Gross premium earned continued to dominate Acko’s income, contributing 73.5% of total revenue, which surged 31% to Rs 2,085 crore. Other sources of revenue included service contracts, reinsurance recoveries, commissions, interest from investments, and miscellaneous income, showing the company’s diverse revenue streams.
Net Loss Shrinks Significantly
Acko’s consolidated net loss fell by 37% to Rs 424 crore, down from Rs 670 crore the previous year. The improvement was fueled by stronger revenue growth and tighter cost management, signaling that the company is on a path toward profitability.
Its EBITDA loss narrowed to Rs 404 crore, with the EBITDA margin improving from minus 31% to minus 14%, showcasing the firm’s enhanced operational efficiency.
Strategic Spending and Cost Control
While total expenses rose 17% to Rs 3,312 crore, Acko successfully controlled key costs:
- Employee benefits slightly declined to Rs 334 crore
- Advertising expenses dropped 12% to Rs 497 crore
- Commissions to sole selling agents increased 35% to Rs 283 crore, reflecting investments in growth channels
These moves highlight Acko’s balanced approach of scaling revenue while keeping spending disciplined.
What This Means for the Insurtech Market
Acko’s performance signals that India’s insurtech sector is maturing rapidly, with companies able to grow aggressively while narrowing losses. Analysts note that Acko’s focus on technology-driven underwriting, efficient operations, and diversified income streams is setting a benchmark for competitors.
Investors and industry watchers will be closely monitoring Acko as it charts a path toward profitability, which could make it one of the key players driving the next phase of growth in India’s digital insurance market.
Looking Ahead
With strong revenue growth and shrinking losses, Acko is well-positioned to continue its expansion in India’s booming insurtech space. Strategic investments in technology, efficient cost management, and strong partnerships could allow the company to turn profits in the near future while continuing to reshape the insurance landscape.
