 "Acko raises $255 mn at unicorn valuation from General Atlantic, CPPIB")
Digital insurer Acko has raised $255 million in a Series D fundraise, valuing the fintech startup at $1.1 billion, led by General Atlantic and Multiples Private Equity. The round also saw participation from Canada Pension Plan Investment Board (CPPIB) and Lightspeed, among others.
The transaction is subject to approval by the country’s insurance regulator, IRDAI.
The total funds raised by Acko now stand at $450 million. The company had earlier raised capital from investors like Amazon, Accel, Elevation, Ascent Capital, Intact Ventures, Munich Re Ventures and Flipkart’s co-founder Binny Bansal, among others. It claims to have over 70 million customers, with the platform clocking approximately $150 million in premiums annually at present.
Varun Dua, founder and CEO, said, “We have succeeded on the auto insurance front and will continue to scale and innovate in this flagship segment. We also continue to deepen our health strategy and intend to invest over $150 million in the health insurance segment in the near future”.
Founded by Varun Dua and Ruchi Deepak in 2016, the insurer sells bite-sized insurance products in partnership with other players in the internet ecosystem such as Amazon, Ola, redBus, Zomato and Urban Company. In addition, ACKO covers nearly 1 million gig workers in the country through partnerships with companies, including Zomato and Swiggy.
Shantanu Rastogi, managing director, General Atlantic, said, “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."
"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," added Rastogi.
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