Plum Insurance, an employee benefits and healthcare platform that has the backing of Tiger Global, has managed to put on quite an impressive show for the fiscal year ending March 2024. The company managed to report an impressive increase in its operating revenue with a 2.5 times year-over-year rise to ₹41.3 crore from ₹16.2 crore in FY23. This growth not only underlines Plum’s growing footprint in the insurance sector but also underlines its strategic focus on meeting the needs of startups and small to medium enterprises.
PC: Inc42
This growth in revenue can be directly linked to Plum’s innovative offering in group insurance solutions. This offering also encompasses the array of health benefits available, such as doctor consultation services, health check-up services, fitness and yoga sessions, mental wellness services, nutrition services, and dental care services. These comprehensive offerings make Plum an effective player in the emerging employee benefits landscape.
The largest share of revenue growth of Plum Insurance is from its insurance commission, which alone accounted for 93.08% of the total operating revenue. This saw a whopping 2.6 times increase to ₹38.46 crore in FY24 from ₹14.6 crore the previous year. Health benefit services also saw a revenue growth of 79.9% to ₹2.9 crore.
Beyond this operational income, Plum Insurance earned ₹4 crore through interest income, thus taking the net revenue to ₹45.3 crore for the fiscal year. This diversified income stream signifies the effective financial management of the company and strategic investment that it has been making in its business.
On the expense side, Plum Insurance reported a notable decline in the overall expenses, which declined 12.6% year-over-year to ₹70.8 crore, having previously stood at ₹81.1 crore in FY23. Employee benefit expenses remained the largest component, ₹54.3 crore, however this was down 14.1% from last year. Other expense heads were mixed with software license fees declining by 29.8% to ₹3.44 crore whereas rent expenses increased by 26.1% to ₹3.04 crore. Fees for health benefits also increased by 43.3% to ₹2.88 crore evidencing the company’s investment in improving employee wellness.
One of the most striking accomplishments for Plum Insurance in FY24 was its ability to curtail losses by 54%, bringing them down to ₹25.5 crore from ₹55 crore during FY23. This large decline in losses reflects that the operational strategies and cost management initiatives of Plum were effective. The ROCE of the company and EBITDA margins also improved, reaching -39.23% and -53.64%, respectively.
On a unit basis, Plum Insurance spent ₹1.71 to earn a rupee of operating revenue in FY24, which shows the ongoing efforts of the company in optimizing operational efficiency. Current assets stood at ₹62.2 crore with cash and bank balances recorded at ₹2.19 crore.
Plum Insurance has so far raised $20.57 million in funding. Key investors include Tiger Global Management, Incubate Fund, and Surge Ventures. Beyond financial stability, this funding enhances the company’s ability to grow and innovate within the competitive health insurance landscape.
With Plum Insurance posting outstanding revenue growth and cutting losses down significantly for FY24, the company boasts a good market position as well as strategic focus on employee benefits and healthcare solutions. While the company will continue to expand its services and offerings, it is perfectly positioned to cash in on the increased demand from Indian startups and SMEs for integrated insurance solutions. Planned innovative approach, combined with robust financial performance, is bound to catapult Plum Insurance into great strides in the coming years in the insurance sector.
