Turtlemint remains profitable in FY21 with a 35% jump in sales

The Insuretch platform Turtlemint posted stable financial performance in fiscal year 2021. The Mumbai-based company saw operating revenues grow 35% to Rs. 63 billion in FY21 from Rs. 46.8 billion in the previous fiscal year (FY20).

At Rs. 60.36 billion – 96% of total operating income – commissions and brokerage services for Turtlemint were highest in FY21, while other insurance services contributed Rs. 2.6 billion, the remaining 4% of total operating income.

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This comes at a time when the company is in talks with New York’s Tiger Global Management to start a new round of the probably worth it Turtlemint with over $ 1 billion – making it one of the few profitable unicorns.

While Turtlemint saw respectable growth in FY21, the increase took the place of an increase in spending. Total Company Spending increased 44% to Rs60.70 billion in FY21 from Rs42.2 billion in FY20.

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Employee benefit expenses were found to be the largest element of expense for the company and these costs increased 91% to Rs 38 billion in FY21 from Rs 19.9 billion in FY20. Salaries and other allowances to employees made up 63% of total expenses.

To grow sales, Turtlemint has issued commissions (paid to agents) that increased 33% in FY21 from Rs 9.2 billion in FY20 to Rs 12.2 billion. According to its own information, the company currently has over 100,000 insurance advisors on its platform.

While Turtlemint’s operating income increased significantly in FY21, profit decreased 55% to Rs 1.62 billion in FY21 from Rs 3.58 billion in FY20.

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Due to the decline in profits, Turtlemint’s operating cash flow decreased to Rs 14 lakh in the most recent fiscal year (FY21), which was Rs 1.34 billion in FY20. At the unit level, the company spent 0.96 paise to earn one rupee of operating income in FY21.

Despite the pandemic, Turtlemint’s operating income increased in FY21, commensurate with the global climate, as the demand for insurance policies (especially those related to health) increased many times over in FY21 due to the COVID-19 pandemic.

Although the company’s profits declined in the fiscal year, it managed to stay in the green, which is a good sign for the eight-year-old company.