How This Indian Startup Insured $12 Mn Funds from E-commerce Giant Amazon
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From grocery to e-commerce, global tech giant Amazon has managed to grab a strong market share in every sector. And, this time the e-commerce major has made a big foray into Indian Insurance sector by investing USD 12 million in Indian startup Acko. This is Amazon‘s first investment in the Indian Insurtech market. Founded in 2016 by Coverfox Co-founder Varun Dua, Acko provides innovative products with personalized pricing based on customer behavior and data analytics. The latest infusion takes Acko’s total equity funding to nearly USD 42 Mn, having raised one of the largest seed rounds for a start-up in India.
Ashish Dhawan, Veteran Investor and Founder of leading private equity fund ChrysCapital, also participated in this round along with existing investor, Catamaran Ventures owned by Infosys co-founder NR Narayana Murthy.
In an exclusive chat with Entrepreneur India, Dua gave us an inside look at the company's plans for expanding further in India.
Two Keys to Customer Acquisition:
“We have had a good first two rounds of funding and have a good mix of tech investors and insurance investors backing us. Over the next two years, we aim to acquire more customers driven by two key levers – offering differentiated products like motor and health insurance products to customers where the end to end experience from purchase to claims are designed for delivering a superior digital experience. Second, partnering with internet ecosystem players to offer relevant, contextual products to customers with personalized pricing using data and analytics,” said Dua
Through both these factors, Dua’s intent is to make Acko a brand that people identify with innovation, superior customer experience, and service. “This investment is a validation of Acko’s strategy to innovate ever more for tomorrow's financial needs of users,” he added.
Why Investors Made a Big Bet on Acko?
Finding a right investor is the most difficult task which every entrepreneur faces. However, Acko got lucky to have found investors like Amazon and ChrysCap.
Earlier this year, Amazon had invested INR 144 crore in digital lending company Capital Float. Commenting on the investment, Amit Agarwal, SVP and Country Manager, Amazon India, said “Acko is a young and nimble start-up bringing technology and data-led innovation to the insurance sector to deliver a better insurance experience for customers. We are excited to back companies that are focused on using technology for enhanced customer experience and are led by missionary founders and management teams. And, we look forward to being a part of their growth journey.”
Furthermore, Investor Dhawan also shared his excitement for being a part of Acko family. He believes in Varun and his team's vision for a new age of insurance in India.
“The insurance industry is ripe for innovation as data and technology embed themselves in the ecosystem. Acko has a unique opportunity to not only make traditional insurance products more accessible to Indians but also create new categories and significantly improve the customer experience,” said Dhawan.