Before the $255 million worth fundraiser, Acko raised $60 million in a round of funding in September 2020. It led to the estimated valuation of $500 million.
Indian digital insurance establishment Acko General Insurance announced on October 28, 2021, that the company has raised $255 million in a Series D round of funding led by General Atlantic together with Multiples Private Equity. The funding ramped up Acko’s valuation to $1.1 billion, crowning it as India’s 34th unicorn to join the unicorn league in 2021.
The funding round also witnessed participation from Canada Pension Plan Investment Board and Lightspeed. Acko’s existing investors, Intact Ventures and Munich Re Ventures also contributed their presence in the round. It is reported that the transaction is yet to be approved by the IRDAI (Insurance Regulatory and Development Authority of India).
The company will use the proceeds from the funding round to invest in different verticals, mainly in healthcare and to expand Acko’s team, especially in domains comprising technology, data science and product.
CEO (Chief Executive Officer) and founder of Acko, Varun Dua unveiled the company’s future plans. He said that Acko will continue to expand as well as innovate in its flagship auto insurance business. Furthermore, the startup will continue working on deepening the health strategy as it plans on investing in the healthcare segment. It will expectedly invest about $150 million in the health business soon. He added that health insurance products are today’s most significant and urgent needs which claim innovation and a deeply integrated ecosystem comprising health services, consequently contributing in betterment of health outcomes for customers.
The startup entered the healthcare segment in 2020, and it has now set aside investments valuing more than $150 million for the healthcare business.
Before the $255 million worth fundraiser, Acko raised $60 million in a round of funding in September 2020. It led to the estimated valuation of $500 million. The startup has secured almost $450 million from investors cumulatively. Acko was backed up in its early stage by some well-known entities including Amazon, Flipkart co-founder, Accel and Ascent Capital.
Founded by Varun Dua along with Ruchi Deepak in 2016, the insurance-tech startup currently has a set a milestone in the local D2C (direct-to-consumer) auto insurance segment. Acko offers its customers embedded insurance products and services including mobility as well as gadget insurance across integrated digital and consumer-friendly platforms like Amazon, Ola, MakeMyTrip, etc.
Managing Director at General Atlantic Shantanu Rastogi shared that Acko has created a differentiated as well as scalable business model based on focusing consumer needs, value-based listing of price, top-rated service with deep technological capabilities. He said India is witnessing a rapid change of pace with increasing customer expectations and technological innovation. It demands for a new and creative approach towards insurance product design, its distribution as well as servicing.