India's Acko achieves unicorn status with $255m round
General Atlantic and Multiples Alternate Asset Management have led a $255 million round for Acko, which claims to be India’s only digital-native insurer, at a valuation of $1.1 billion.
Canada Pension Plan Investment Board (CPPIB) and Lightspeed Growth – a growth equity vehicle managed by Lightspeed Venture Partners – also took part. Existing investors Intact Ventures and Munich Re Ventures, the VC arms of Germany’s Munich Re and Canada’s Intact Insurance, respectively, both re-upped.
Acko’s previous round, which closed at $60 million in September 2020, valued the company at $500 million. That round was led by Munich Re Ventures and featured Amazon, Intact, and RPS Ventures.
Founded in 2016 by Varun Dua and Ruchi Deepak, Acko positions itself as a frictionless insurance provider that leverages intuitive, zero-paperwork purchase and claims processes. The company offers embedded insurance products covering mobility and gadgets through consumer-facing online platforms like Amazon, MakeMyTrip, Ola, Urban Company, and Bajaj Finance.
It also claims to have pioneered direct-to-consumer auto insurance in India and covers nearly one million gig workers through partnerships with companies including food delivery platforms Zomato and Swiggy. Last year, Acko entered the health insurance space, selling policies to employers. A flagship retail health insurance product is scheduled for launch in 2022.
The company has more than 70 million customers and a run rate of approximately $150 million in terms of premiums issued. On closing its previous round in 2020, Acko had 60 million customers.
Dua said in a statement that more than $150 million would be invested in the healthcare vertical, with an emphasis on scaling the team and bolstering talent in technology, product, and data science. Acko’s auto insurance business is better established, but there are still plans to pursue greater scale and innovation.
“Acko has developed a differentiated and scalable business model based on a singular customer focus, value-based pricing, highly-rated service, and deep technology capabilities,” added Shantanu Rastogi, a managing director at General Atlantic.
“Insurance is a large, fundamental sector in any economy, and in India specifically, the country is witnessing a rapid change of pace with rising customer expectations and technological innovation – requiring a fresh approach towards insurance product design, distribution, and servicing.”
Acko has now raised $450 million to date. Other investors in the company include Accel Partners, Elevation Capital, Ascent Capital, Baring Private Equity India, VenturEast, Catamaran Ventures, Techpro Ventures, Swiss Re, and Flipkart co-founder Binny Bansal.
The company competes with the likes of PolicyBazaar, which is planning a domestic IPO. RenewBuy and Turtlemint are among the smaller players. Both have closed funding rounds of more than $40 million since the start of the year.
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