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Indian Insurtech startup Acko raises $60 million

Amidst the COVID-19 struck market seeing the ever thriving edtech startups scooping up major funding, Bangalore-based, 3-year old Amazon backed Insurtech startup, Acko has managed to bring in $60 million led by Munich Re Ventures.

Founded by Varun Dua, Acko is an Insurtech startup that develops bite-sized auto insurance policies. Its product offering includes car, bike, health insurance to customers with zero paperwork. Previously valued at $300 million in 2019, the recent Series D funding led by Munich Re Ventures has brought Acko’s current valuation to $500 million and their total funding to over $200 million.  

Founded in 2016, Acko has catered to over 60 million customers and sold over 650 million policies. To broaden their product offering, they expanded their catalog to provide healthcare protection around 6 months back to include policies for health, mobile repair, tv, and appliances, bite-size insurance, and even small-ticket insurance cover in addition to the existing car, taxi and bike insurances. Over 150,000 employees have benefitted from their healthcare plan since then. Their aim to provide accessible and ‘affordable’ policies have brought them a large and loyal customer base.  

As Munich Re Ventures’ first investment in India, we look forward to the positive impact that digitally native insurance solutions will have on the country with Acko leading the way. – Oshri Kaplan, Director, Munich Re Ventures  

Being India’s first digital-native insurance company, Insurtech startup Acko stands apart because of its unique approach. They have taken a step out of the box by not relying on a middleman and selling directly to the customer or through partners like Amazon. This approach has greatly influenced their business by allowing them ample space to innovate and tailor policies to their customers’ needs.

They have even used underwriting tech to analyze large amounts of data to pinpoint customer eligibility for specific policies. However, the one aspect that stands out prominently, especially to customers, is the quick process. Customers have easy access to affordable policies with quick digital sign-ups, and no paperwork and excess formalities.  

Munich Re Ventures 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. – said Varun Dua, Founder, and CEO, Acko 

With this round of funding, Insurtech startup Acko has received a significant boost to expand its business and strengthen its base. The utilization of the fresh funds has been intelligently planned to scale their technology and data teams by at least 30 to 40% and push branding for their products to reach more clients, particularly in small towns.  

The balance funds will be directed towards financing their insurance policies. This funding aids their vision to make insurance as ‘effortless’ as possible. They ‘aim to fundamentally change how a new generation of customers interact with and experience insurance’. 

With edtech receiving the most funding in the current market, Insurtech startup Acko’s funding gain is an additional positive win. Innovation in the present times is key to moving forward, and Acko has efficiently picked up on that and used it to boost their business. Digitalization is taking over the world, and Varun Dua has applied it to the unexpected market of insurance and has successfully proven the ease of the process. Acko has established its presence for the long haul.

Neelam Sawlani
Neelam Sawlani
Neelam is a freelance content writer who enjoys dabbling in anything creative she can find. She spends her free time drawing & in craftwork. She likes to browse the internet, read new things, learn and expand her knowledge. Her family and dogs are what keeps her going.
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