BENGALURU:
Flipkart co-founder
Binny Bansal and former SoftBank managing partner Kabir Misra’s fund RPS Ventures are backing new-age insurance company
Acko
in a $65-million (Rs 450-crore) funding round. The online-only insurer has also on-boarded Canadian insurance major Intact Ventures in a deal that has valued it at close to $250 million.
Bansal has put in $25 million in the Bengaluru-based startup, making it one of his largest personal bets on a homegrown company. Existing investors like Amazon, Accel, SAIF Partners and TechPro Ventures have also participated in this round. Avendus Capital advised Acko on the deal.
Varun Dua
, who previously started insurance aggregator Coverfox, told TOI the company will be using the new funds for capital compliance according to sector regulations as well as invest in its core technology platform and enhance its distribution.
Apart from auto insurance being its core play, the company offers bite-sized insurance products such as rider insurance, mobile and appliance protection, along with ticket cancellation in partnership with top internet merchants like Ola, Amazon, redBus, Zomato and UrbanClap. It is hoping to roll out health insurance this year as well. Third-party partners account for about 40% of its total business. Dua said Acko has issued insurance to about 20 crore vehicles in the last one year. Acko is now aiming to grow its business by about four times in the next year.
“Technology-led insurance is expected to play a significant role in the growth of the under-penetrated insurance sector in India. Acko is the pioneer of digital-native insurance and I am delighted to partner in its exciting growth journey,” said Bansal.
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