Turtlemint witnessed a stable financial performance in the financial year 2021
This comes at a time when the company is in talks with New York’s Tiger Global Management to raise a new round
Turtlemint, an insuretech platform, has a steady financial performance in fiscal year 2021. The Mumbai-based company increased its operational revenue by 35% to Rs 63 crore in FY21, up from Rs 46.8 crore the previous fiscal year (FY20).
Commission and brokerage accounted for Rs 60.36 crore of Turtlemint’s total operating income in FY21, accounting for 96 percent of the company’s total operating income, while other services provided to insurers contributed Rs 2.6 crore, accounting for the remaining 4%.
This comes as Turtlemint is in discussions with Tiger Global Management in New York to raise a new round of funding, which is likely to value the company at over $1 billion, making it one of the few profitable unicorns.
Despite the fact that Turtlemint grew in size in FY21, the expansion was not accompanied by an increase in expenses. From Rs 42.2 crore in FY20 to Rs 60.70 crore in FY21, the company’s overall expenses increased by 44% to Rs 60.70 crore. Employee benefit expenses climbed 91 percent to Rs 38 crore in FY21 from Rs 19.9 crore in FY20, making them the company’s largest expense element. Salaries and other forms of compensation for employees accounted for 63 percent of total costs.
To boost sales, Turtlemint boosted commission costs (amounts paid to agents) by 33% to Rs 12.2 crore in FY21 from Rs 9.2 crore in FY20. The firm claims to have over 100,000 insurance advisers on its platform at the moment.
Turtlemint’s cash flow from operations declined to Rs 14 lakh in the past fiscal year (FY21) from Rs 1.34 crore in the previous fiscal year (FY20). In FY21, the company spent 0.96 paise per rupee of operating income to generate a rupee of operating income.
Despite the pandemic, Turtlemint’s operating revenue increased in FY21, as demand for insurance policies (especially those connected to health) soared multifold in FY21 as a result of the COVID-19 pandemic.