Acko Insurance saw a steep rise in its annual revenue in the financial year 2020 with its revenue clocking at Rs 195 Cr. This is an increase of more than 3X as compared to the annual revenue of nearly Rs 60 cr that the company had earned in FY19.
However, Acko’s expenses have also almost doubled, with the Mumbai headquartered company’s total expenses for FY20 standing at nearly 383 Cr. The annual expenses in the last financial year stood at nearly Rs 194 Cr.
But with company’s revenue increasing by threefold, it has managed to keep its losses under control. Subsequently, it has also managed to improve its bottom line marginally. The company’s losses in FY20 stood at nearly 197 Cr, slightly more than 134 Cr in FY19.
The company has said in its financial statement that that FY20 has proved to be a significant year with respect to claims. In FY20 the number of claims stood at 1,95,695 whereas the number of claims in FY19 stood at merely 24,831. This is an increase of whopping 688%, the company said.
Acko was recently in news for raising $60 Mn or 441 Cr in a fresh round led by German insurance giant Munich Re. Existing investors Amazon and RPS Ventures had also participated in the round.
The insurance space has witnessed frenetic activities during the last few months. Digital payment major Paytm took a decisive step in becoming a full-fledged insurance player by acquiring a 100% stake in the insurance company Raheja QBE.
Pune based Digit Insurance had scooped up nearly $85 Mn in its first-ever external funding round earlier this year. Celebrity couple Virat Kholi and Anushka Sharma was also among participants in the funding round.
As per regulatory filings, Digit Insurance has allotted 2,66,667 equity shares to Virat Kholi and 6,6667 equity shares to Anushka Sharma at a premium of RS 65 per share.
Additionally, Insurance aggregator Turtlemint and group health insurance player Plum have raised funds this week.
Investors ‘sustained interest is a testimony to the potential growth of India’s insurance tech sector. The insurance penetration in India at 3.69% is one of the lowest in the entire world.
As a result, Investors believe that there exists large headroom for growth in India’s insurance market and much of this growth will be propelled with the help of technology. This belief gets much-needed credence from the fact that smart phone and internet penetration is growing at impressive rate across the country during last few years.
Acko Insurance’s rival Digit Insurance has also filed its financial statement for FY20. According to the regulatory filings, Digit’s Insurance operating profit for FY20 stood at approximately INR 226 Crore as compared to 299 Crore in FY19.