A leading player in the ever growing digital Insurance market of India, Amazon backed Acko has raised $60 million in a Series D funding round. The round, that was led by Germany backed Munich Re Ventures, saw participation from RPS Ventures, Intact Ventures and of course, Amazon.
This brings the company’s to-date raise to $200 million, while bringing the startup’s valuation to half a billion dollars in just 4 years of operations. Acko plans to use this investment to scale its technology and data teams up by at least 30% to 40%. Moreover, a chunk of the capital will be used for branding purposes, and to reach more customers, especially in small cities and villages.
This is in line with the company’s goal of providing insurance to every Indian, especially since most of the country’s inhabitants can’t afford one. However, with Acko’s direct to consumer offering and easy to manage interface, the startup is “obsessed with making insurance effortless,” and will continue to work in that direction.
Moreover, whatever capital is left after the aforementioned goals are achieved, will be used to finance insurances. This is because India’s regulatory rules force insurance startups to underwrite risks themselves.
At Acko, you can buy 3 main types of insurances: “Car and Taxi,” “Bike,” and “Health.” The company promises Incredibly low premiums (due to the absence of a middleman), ease of access (due to its digital nature, eliminating the need for paperwork) and Zero hassle claims (to make sure that your experience with Acko doesn’t turn out to be a bitter one). You can just give the company a call, file a claim online and experience speedy cashless claim settlements.
So far, it has partnered with the likes of Amazon, Ola, MakeMyTrip, Redbus, Oyo, Zomato, and many more. Thus, Acko is a veteran in the industry, and even though the competition is expected to get stiff, especially with the entry of Paytm in the market, this new capital will ensure that Acko still retains its spot at the top.