Insurtech unicorn ACKO managed to trim its consolidated net loss by 36.7% to INR 424.4 Cr in FY25 from INR 669.9 Cr in the previous year, on the back of strong revenue growth and improvement in its margins.
Operating revenue rose 34.7% to INR 2,836.8 Cr during the year under review from INR 2,106.3 Cr in FY24. Other income declined 6.1% to INR 50.6 Cr from INR 53.9 Cr.
Including other income of INR 50.6 Cr, the startup’s total income rose 33.7% to INR 2,887.5 Cr from INR 2,160.2 Cr in FY24.
ACKO’s EBITDA loss narrowed to INR 404.1 Cr in FY25 from INR 650.2 Cr, while EBITDA margin improved to –14% from -31% in the previous fiscal year.
Founded in 2016 by Varun Dua and Ruchi Deepak, ACKO sells automobile, health, and travel insurance on its platform. The startup forayed into the life insurance space last year. ACKO entered the unicorn club in 2021 after raising $255 Mn in its Series D round, led by General Atlantic and Multiples Private Equity Fund.
The startup has raised a total funding of $458 Mn to date. It competes against the likes of Policybazaar, Go Digit, InsuranceDekho, LIC, among others.
Breaking Down ACKO’s Expenses
The startup’s expenses rose 17% to INR 3,311.9 Cr in FY25 from INR 2,830.2 Cr in the previous year.
Employee Benefit Expenses: ACKO spent INR 334.4 Cr in FY25 on employee expenses, down 5.7% from INR 354.6 Cr in FY24.
Advertising Expenses: The spending under the head dropped 11.7% to INR 496.9 Cr from INR 562.7 Cr in the previous fiscal year.
Miscellaneous Expenses: The spending under this rose 32% to INR 2,006.1 Cr from INR 1,519.1 Cr in FY24.
IRDAI Turns Up The Heat On ACKO
The rise in expenses comes at a time when ACKO General Insurance is facing pressure from Insurance Regulatory and Development Authority of India (IRDAI). Last year, the regulator rejected ACKO’s request for relaxation from the Expenses of Management (EoM) limits.
IRDAI has asked the startup to file a business plan that fully meets EoM rules and to submit quarterly projections until March 2026. This puts ACKO under tighter scrutiny.
Notably, insurers in India must stay within IRDAI’s EoM limits, which sets a cap on their expenses as a percentage of gross written premium. These limits are meant to prevent aggressive cash burn that could weaken an insurer’s ability to pay claims.
ACKO sought relief from these limits under Regulation 11 of the 2023 EoM rules, anticipating it would not meet them. IRDAI rejected the request in December 2024 and asked for a plan to comply by FY26.
The startup later submitted a revised plan pushing compliance to Q4 FY27, but the regulator turned that down again in May 2025, reiterating the FY26 deadline. ACKO’s auditor recorded this as a key matter still under review at the board level.
Earlier in May this year, IRDAI penalised ACKO as part of an action on a remote inspection that examined the startup’s conduct during FY20 and FY21. It imposed a penalty of INR 1 Cr pertaining to ACKO’s payments to Ola Financial Services, which the Authority concluded were effectively rewards for soliciting insurance policies even though the latter was not authorised to perform that role at the time.
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