Jaipriya K S,
Content Writer, siliconindia

Kick-started with a promising note for the Indian start-ups, the year 2024 enthralled an average funding of $1 billion monthly which is a notable surge when compared to FY23 during where the average monthly funding stood at less than $500 million & decreased three times in a year. In April 2024, the startups in India exceeded $1 billion over 124 deals. The startup growth & their utmost access to funding from various financial backers is driving the system towards success, but there are 108 startups posted a combined loss of Rs. 71,042.5 crore in 2023.

As per the report of Financial Express, over half of the startups readying to launch IPO in India are grappling with losses in financial statements. In spite of losses, the majority of the start-ups have shown significant growth rate in their operative profits & sales over the last fiscal year. In such case, let’s delve into the 5 Visionary startups in India facing significant loss but striving to overcome setbacks with steadfast determination & breaking barriers steadily and confidently.

Acko’s Loss in FY23 edges to Rs. 738 crore

Acko is a new-age tech company solving real-time problems in insurance & first digital-native assurer in India. In the year, 2023, the operating revenue of the company escalated by 43. 5% to Rs.1,185 crore. But along with revenue, the total expenses outpaced the company’s profit & losses increased by 53.1%.

Equated with the Rs. 482.3 crore loss in FY22, the Bengaluru-based insurance startup reported Rs. 738.5 crore in FY23, where the expense in 2022 stood Rs. 2,717 crore. The total unsettled losses of the company accounted at Rs. 2, 717 crore, ROCE & EBITDA margins stood at -73.4% & -40.5% in FY23.

To earn a rupee of functional revenue, the Acko has spent Rs. 1.44. Even the loss rate of the company sees hike, the company strives to set-back the revenue rate & achieve profitability by 2027. It aims to close the revenue target of Rs.2000 crore in FY24 & forecasts the business operations to grow 35% Y-o-Y.

According to The Economic Times, “Acko is targeting to close FY24 with a premium of Rs. 2,000 crore & expects the business to grow 35% year-on-year. For the nine-month period ended December, Acko has already clocked premiums of Rs.1,360 crore”.