Acko General Insurance, an online-only InsurTech start-up based in Mumbai, India, has raised an investment of $12 million led by Amazon, bringing the company’s total equity funding to nearly $42 million.
This announcement confirms rumours from January 2018 that Amazon was on the verge of making its first investment in the disruptive Indian start-up, which had recently received in-principal approval from the financial market regulators in India.
This latest funding round, which pegs Acko’s valuation at about $100 million, also saw investments from Ashish Dhawan, founder of private equity fund ChrysCapital, and Narayana Murthy, founder of investment firm Catamaran Ventures.
Acko was established by Varun Dua in 2016, and leverages data and analytics to provide highly personalised insurance products through its digital platform.
Dua commented on the latest round of investments: “We are thrilled to have Amazon and Mr. Ashish Dhawan as our investors. This investment is a validation of Acko’s strategy to innovate ever more for tomorrow’s financial needs of users.”
Amit Agarwal, Senior Vice President (SVP) and Country Manager for Amazon India, also commented: “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. We look forward to be a part of their growth journey.”
Dhawan added: “We strongly believe in Varun and his team’s vision for a new age of insurance in India and are excited to be part of the Acko family. 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.”
Additional Acko investors include Accel Partners, SAIF Partners, Swiss Re Reinsurance Holding Company Ltd. & Transamerica Ventures Fund, Venk Krishnan and Subba Rao of NuVentures, Kris Gopalakrishnan, co-founder Infosys, Hemendra Kothari of DSP Blackrock, Atul Nishar, founder of Hexaware Technologies, and Rajeev Gupta, founder of Arpwood Capital.
Several of Acko’s investors also backed Coverfox, a Mumbai-based online insurance brokerage platform, in its recent Series C round of funding, which closed at $22 million and was led by International Finance Corp (IFC) and Transamerica.
Earlier this year, Amazon invested Rs 144 crore ($21 million) in online lending company Capital Float, and also picked up a minority stake in financial services marketplace BankBazaar in 2015.