Bengaluru:
Home-grown digital-native insurer ACKO on Wednesday said it had raised $60 million (approximately Rs 441 crore) in a round of funding led by Munich Re Ventures,the investment arm of the global reinsurer Munich Re.
Existing investors Amazon, RPS Ventures and Intact Ventures Inc.also participated in the round, ACKO said, adding that it plans to use the funds to accelerate its growth in existing lines and expansion into new product lines.
Munich Re, the largest international reinsurer, is already present in India through subsidiary ERGO which has a tie- up with HDFC in HDFC ERGO General insurance and HDFC ERGO Health Insurance.It also has a reinsurance branch operation in the country..
“Munich Re has been a strategic partner to ACKO since inception and we are really excited to bring them on board as our investor. As one of the largest reinsurance companies globally, their investment shows confidence in our data and technology-driven business model,” Varun Dua, Founder and CEO, ACKO. said in a statement.
“This confidence is further reinforced by the continued support of our existing investors, Amazon, Intact and RPS Ventures,” he said.
ACKO said it provides insurance to the “digitally savvy” through an intuitive purchase experience, zero-paperwork and stress-free claims process.
The startup has so far issued over 650 million policies to over 60 million unique customers to date.
ACKO addresses insurance needs through data-based personalised pricing and instant claim verification and settlement.
It recently partnered with Amazon Pay for distributing two and four-wheeler insurance.
A TechCrunch report put the market valuation of the company at around $500 million.This new round takes the total amount of funds raised by Acko to date, to $200m, according to a report by TechCrunch.
Avendus Capital was the financial advisor to Acko for the deal.