Financial inclusion is booming in India, and insurance is a key part of that ecosystem. Recognising that need, Binny Bansal is doubling down on his previous investment in Acko, with fresh cash infusion of $20 Million in personal capacity. Earlier, the billionaire Flipkart co founder had led a $65 Million round in Acko.
According to reports in media, Binny Bansal’s personal investment in Acko will now go upto as much as $45 million, making it his largest investment in personal capacity in the Indian startup ecosystem.
The capital raising will also see private equity funds Ascent Capital invest $16 million, as per regulatory filings to the Registrar of Companies. Others like Baring Private Equity Partners India and Ventureast are also likely to participate in the funding round, people close to the matter said.
Founded by Varun Dua in 2016, Acko General Insurance, India’s first digital native insurer, offers an intuitive purchase experience, cheaper prices and stress-free claims. Acko addresses insurance needs across multiple touch-points in daily lives of the “digitally-savvy” with customer centric product design, instance-based products, customized real-time pricing and instant claim verification and settlement.
Acko’s advantage over competitors lies in its approach to consumers. The company uses a direct-to-consumer approach for distributing motor insurance, allowing for favourable risk selection and superior underwriting. Acko also offers innovative and bite-sized insurance products such as rider insurance, mobile and appliance protection, ticket cancellation etc in partnership with 15+ leading players in the internet ecosystem. In a short span of 12 months of operations, the company has distributed insurance policies to over 20mn unique customers.