Insurtech startup InsuranceDekho slipped into loss in the financial year ended March 2025 despite strong revenue growth. The Gurugram-based startup reported a net loss of INR 47.5 Cr in FY25 as against a net profit of INR 85.7 Cr in FY24.

Its operating revenue jumped 73.5% to INR 1,290 Cr during the year under review from INR 743.6 Cr in FY24. However, total expenditure rose at a faster pace, surging 93.4% to INR 1,352 Cr from INR 699.2 Cr in FY24.

The startup posted an EBITDA loss of INR 31.9 Cr during the year as against an EBITDA profit of INR 92.3 Cr in FY24. As a result, EBITDA margin slipped to -2% from 12% in the previous year.

Including other income of INR 20.8 Cr, InsuranceDekho’s total income stood at INR 1,315.5 Cr in FY25.

In a statement, a spokesperson of InsuranceDekho attributed the loss to strategic investments made in new tech-first initiatives in FY25, including platform enhancements, AI-led automation, and pilots designed to unlock new distribution models.

“Fluctuations in EBITDA are not unusual for startups that are scaling rapidly especially when laying the groundwork for long-term sustainability. These cycles typically stabilize over time as business units mature and efficiencies kick in… We remain confident in our growth trajectory and our ability to continue strengthening our portfolio, expanding distribution, and eventually move toward profitability…” the spokesperson added.

Founded in 2017 by Ankit Agrawal and Ish Babbar, InsuranceDekho was initially launched as the insurance arm of CarDekho before being spun off as a separate business. It distributes motor, health and life insurance products through a wide network of point-of-sales (PoS) agents and its digital platform.

In March 2025, the startup raised $70 Mn (around INR 611 Cr) in a funding round co-led by Beams Fintech Fund, MUFG and BNP Paribas Cardif, which it said would be used to strengthen its tech stack and expand distribution. It also received a composite insurance broking licence from IRDAI in July 2024, paving the way for entry into reinsurance.

However, FY25 also saw challenges, with its Gurugram headquarters raided by the GST department in January over alleged tax evasion.

Notably, the startup is reportedly eyeing a public listing by 2027.

Employee Benefit Expenses: The startup spent INR 153.7 Cr on its employees in FY25, up 18% from INR 130.2 Cr in FY24.

Advertisement Expenses: Ad spends surged 170% to INR 258.8 Cr in FY25 from INR 95.8 Cr in the previous year, reflecting an aggressive marketing push

Point Of Sales Charges: The largest expense item, payouts to its agents, shot up nearly 178% to INR 836.8 Cr in FY25 from INR 301.2 Cr in FY24. This sharp rise highlights the startup’s strategy of scaling distribution rapidly, but it also weighed heavily on profitability.

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