Amazon-backed Insurtech Startup Acko Raises $60 Mn Funding
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Insurtech startup Acko on Wednesday announced that it has raised USD 60 million funding led by Munich Re Ventures, corporate venture arm of Germany-based reinsurance and primary insurance company Munich Re.
Existing investors Amazon, late stage VC firm RPS Ventures and Intact Ventures, corporate venture arm of Canada’s property and casualty (P&C) insurance provider Intact Financial Corporation, also participated in the round.
Founded in 2016 by Varun Dua and Ruchi Deepak, Acko is a fully digital insurance firm that offers zero-paperwork and tech-enabled claims process to its users. Its product offering include car, bike insurance, health, mobile repair and TV and appliances insurance. It also offers bite-sized insurance—small-ticket insurance cover— products in partnership with over 20 companies in the internet ecosystem, such as Amazon, Ola, redBus, Zomato and UrbanClap.
Acko claims that its differentiated approach for auto insurance has advantages over traditional channels, as it leverage data and analytics to provide personalised pricing and instant claim verification and settlement.
The company has so far issued over 650 million policies to over 60 million unique customers.
Prior to the latest round, Acko secured USD 36 million from Binny Bansal and PE firm Ascent Capital in November 2019. With the latest capital infusion, its total fundraise stands at estimated USD 203 million till date.
“Since our first investment in Acko, which was made last year, it has scaled quickly to become the leading digital insurer in India by leveraging data and technology to acreate a unique customer-centric experience,” said Karim Hirji, SVP and MD, Intact Ventures.
Commenting on the latest funding, founder and CEO Dua said “Munich Re has been a strategic partner to ACKO since inception and we are really excited to bring them on board as our investor. As one of the largest reinsurance companies globally, their investment shows confidence in our data and technology-driven business model. This confidence is further reinforced by the continued support of our existing investors, Amazon, Intact and RPS Ventures.”
The Mumbai-headquartered company will deploy the funds to accelerate its growth in existing lines and expansion into new product lines.