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Unnati Agri crosses Rs 500 Cr revenue in FY24; losses widen marginally

EntrackrEntrackr · 10m ago
Unnati Agri crosses Rs 500 Cr revenue in FY24; losses widen marginally
Medial

Unnati Agri continued its growth momentum by crossing the Rs 500 crore revenue mark in the fiscal year ending March 2024. While its losses increased by 14% year-on-year, they remained under control during the same period. Unnati Agri’s revenue from operations increased by 30% to Rs 515 crore in FY24, from Rs 397 crore in FY23, according to its financial statements sourced from the Registrar of Companies (RoC). Unnati enables farmers to buy agri-inputs and sell produce directly to food processors and agribusinesses, generating 99% of its revenue from these transactions. It also offers pre- and post-harvest services along with working credit through a unified platform. On the expense side, material costs remained dominant at 88% of total expenses. These costs rose 27% to Rs 469 crore in FY24 from Rs 370 crore in FY23. Discount charges, tied to incentives and promotions, more than doubled to Rs 31 crore from Rs 15 crore. Employee benefits increased to Rs 15 crore, and other expenses rose to Rs 18 crore. Overall, the Orios Venture-backed firm’s total expense increased by 29% to Rs 533 crore in FY24 from Rs 412 crore in FY23. Despite the top-line growth, the company’s losses slightly widened to Rs 16 crore in FY24 from Rs 14 crore in FY23. Its ROCE and EBITDA stood at -17.19% and -2.03%, respectively. On a unit basis, the company spent Rs 1.03 to earn a rupee of operating revenue in FY24. Unnati’s total assets rose to Rs 144 crore in FY24, with current assets reaching Rs 141 crore. As of March 2024, the firm held Rs 34 crore in cash and bank balances, offering a liquidity buffer. According to startup data intelligence platform TheKredible, Unnati Agri has raised approximately $14 million in funding till date, having NABVENTURES and VSS Investco as its lead investors. Its co-founders, Amit Sinha and Ashok Prasad together own 44.6% of the company.

Acko hits Rs 2,000 Cr revenue threshold with lower losses in FY24

EntrackrEntrackr · 1y ago
Acko hits Rs 2,000 Cr revenue threshold with lower losses in FY24
Medial

New-age insurance firm Acko has shown consistent growth over recent years, surpassing the Rs 2,000 crore revenue mark in the fiscal year ending March 2024. At the same time, the company reduced its losses by 9%, bringing them below Rs 700 crore. Acko’s revenue increased by 19.8% to Rs 2,106 crore in FY24, up from Rs 1,758 crore in FY23, according to its consolidated annual figures accessed from the Registrar of Companies. For the digital insurance provider, income from gross premium earned accounted for 73.35% of total income, showing a 33.9% growth to Rs 1,587 crore during the last fiscal year. Service contracts, recoveries from reinsurers, commissions, interest income from investments, and other miscellaneous income brought total revenue to Rs 2,160 crore in FY24, up from Rs 1,797 crore in FY23. See TheKredible for the detailed revenue breakup. In terms of cost breakdown, claims paid in the previous fiscal year accounted for 29.3% of total expenses, remaining steady at Rs 830 crore in FY24. Advertising and promotional costs were the next largest overhead, rising to Rs 563 crore in FY24. Employee benefits, commissions to selling agents, reinsurance premiums, information technology, legal/professional fees, and other expenses brought total expenditure to Rs 2,830 crore in FY24, compared to Rs 2,535 crore in FY23. See TheKredible for the detailed cost breakdown. The controlled costs in employee benefits, advertising, and claims paid helped Acko reduce its losses by 9.3% to Rs 670 crore in FY24, down from Rs 738.5 crore in FY23. While ROCE and EBITDA margin improved, they remained negative at -35.2% and -30.1%, respectively. On a per-unit basis, Acko spent Rs 1.34 to earn a rupee in FY24. Earlier this year, Acko founder Varun Dua stated that the firm aims to achieve profitability by FY27, driven by its general and health insurance segments turning positive. Its competitor, Digit Insurance was recently listed on the stock exchange and posted more than Rs 1,800 crore revenue in Q1 FY25. FY23-FY24 FY23 FY24 EBITDA Margin -40.55% -30.10% Expense/₹ of Op Revenue ₹1.44 ₹1.34 ROCE -54.98% -35.23% To date, Acko has raised over $458 million, including a $255 million unicorn round led by General Atlantic in October 2021. According to TheKredible, General Atlantic is the largest external stakeholder with a 10.7% stake, followed by Accel Partners and Elevation Capital. See TheKredible for the complete shareholding pattern. Acko’s rise in the insurance market, built mostly around its auto insurance business first, and now, the push into general and health insurance, certainly caused a flutter, if not a disruption. The digital first approach is no longer the novelty it was even 2 years back, and it now faces a much tougher grind ahead as legacy stalwarts fight back to retain marketshare. The travails of Star Health (aggressive selling initially, and now customer data leak) are just one indication of the many risks insurers face in the health segment, where shortcuts are frowned upon. Acko has also been pumping money into advertising and promotions rather than the traditional distribution model. However, it might be running up against the limits of such an approach, as the role of agents and other influencers remains strong in the health segment. Even Auto firms with their in-house insurance tie-ups are fighting harder now, with dealers sweetening in-house insurance offers with other deals around accessories etc. Dealers at firms like Toyota even warn that cashless settlements are an issue with Acko, something that we couldn’t verify independently yet. All in all, Acko is into the deep end of the market now, where every basis point gain in marketshare will be fought over, and it might need to relook its high decibel advertising only approach soon.

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