Digital insurance provider Acko on Thursday, October 28 announced a $255 million Series D fundraise led by General Atlantic, a global growth equity firm, and Multiples Private Equity, an India-focused private equity firm. The round also included participation from Canada Pension Plan Investment Board and Lightspeed as well as existing investors, Intact Ventures and Munich Re Ventures. This fundraise values the company at $1.1 billion.
The Bengaluru-based company claims to have pioneered the direct-to-consumer auto insurance space in the country. According to the company, it has one of the largest market shares in embedded insurance products like mobility and gadget insurance across large digital consumer platforms like Amazon, MakeMyTrip, Ola, Urban Company, Bajaj Finance and others. In addition, Acko says it covers nearly a million gig workers in the country through partnerships with companies including Zomato and Swiggy, with customised coverage to protect the rapidly growing workforce.
Acko’s total funds raised now stand at $450 million. Previously, Acko has raised capital from investors including Amazon, Accel, Elevation, Ascent Capital, Intact Ventures, Munich Re Ventures and Flipkart’s co-founder Binny Bansal, among others. Acko says it has over 70 million customers, clocking a run-rate of approximately $150 million in premiums, and has a large compounding base who continue to renew with Acko for their long-term protection needs.
Varun Dua, Acko’s Founder & CEO said, “We strongly believe in supporting our customers in protecting their valued assets or the health and safety of their loved ones via a differentiated product and value-added service. Insurance and protection must work for people based on their unique risks and needs in a seamless, reliable fashion. We are thrilled to partner with trusted investors who have a deep understanding of the regulatory environment and bring first-hand experience in working with innovative, high-growth companies.”
The company intends to further invest in the healthcare vertical and scale its team, particularly within technology, product and data science. “We have succeeded on the auto front and will continue to scale and innovate in our flagship auto insurance business. We also continue to deepen our health strategy and intend to invest over USD 150 million in the health business in the near future,” he added.