Acko claims to be India’s first digital insurance company that sells directly to purchasers.
This Bangaluru based insurtech startup, founded by Varun Dua and Ruchi Deepak has recently raised $60 million and is making headlines all over the industry.
The funding was Series D and was led by Munich Re Ventures from Germany with active participation from existing investors: Intact Ventures Inc.- Canada’s largest casualty and property insurer, RPS Ventures and Amazon.
The company aims to expand its existing line of work and enter into new product lines with this $60 million funding which will escalate their growth incredibly.
In a recent statement, the company said it has issued over 650 million policies to over 60 million people till date since its inception as an insurance company that sells directly to consumers digitally.
Varun Dua, founder and CEO, Acko said in an interview that they are excited to have Munich Re on board as an investor. He also mentions their association since the beginning of the company as a strategic partner.
Munich Re Ventures has made 30 investments in insurtech and many more in other tech companies. It was founded in 2015 and is based out of San Francisco.
The excitement of joining hands with India’s leading digital insurers, Acko and other tech companies overwhelms Oshri Kaplan, Director, Munich Re Ventures. He further mentions his support for Varun Dua and Acko as they continue their journey in the industry.
As mentioned earlier, Acko Sells policies to its customers directly through its own digital platform. Acko deals with three major niches of insurances- Health Insurance, Micro- Insurance and Motor Insurance.
It recently collaborated with Amazon Pay for selling 2-wheeler and 4-wheeler insurance. Not only Amazon, but Acko has also previously partnered with some of the biggest tech names in the market such as Ola, RedBus, UrbanClap, Zomato and many more.
As a positive testimonial, Karim Hirji, Senior Vice president and MD of Intact ventures commented that since their first investment in Acko, it has levelled up quickly to become the leading digital Insurer of India by anchoring technology and data to create an aesthetic user-centric experience.
Acko makes it a unique and easy experience for people to access and purchase policies. As an advantage of being digital, the hustle of paperwork is saved and a simple sign-up is all that is required by the user. This makes our customers happy- Dua Said.
Dua has spent more than a decade in the industry and dealing with insurance businesses, said he is not worried about the competition as the market is large enough, referring to Paytm acquiring insurance firm Raheja QBE for $76 million.
The startup plans to elevate its technology and data streams by 30% and use a portion of the funding to invest in branding. Dua said, he would like to reach out to as many people as possible, especially those living in smaller cities in India as this platform would make their life much easier.
It is essential to note the financial advisor to Acko for the deal- Avendus Capital which has helped the company pull this deal through.
In a statement, Dua said, “we would like to be in a position where we always have a strong balance sheet.”
The main reason why Acko has gained so much popularity amongst Indians, as per Dua is the absence of middlemen who have proven to be a dampener in the growth of the insurance industry at large.
Having direct engagement with the customers, Acko offers personalized and competitive policies to its customers which have proved in more ways than one that a solid business model and efficient execution shall certainly meet growth and success.