Mumbai-based e-insurance (fintech) startup Acko General Insurance Co. Ltd has raised $30 million (Rs 195 crore) in seed funding from a clutch of investors including SAIF Partners and Accel Partners.
The investors include Narayan Murthy’s Catamaran Ventures; Venk Krishnan and Subba Rao of NuVentures; Kris Gopalakrishnan; Hemendra Kothari of DSP Blackrock; Atul Nishar – founder & Chairman of Hexaware Technologies; Rajeev Gupta, veteran investment banker and founder of Arpwood Capital, Accel Partners and SAIF Partners.
Acko was founded in 2017 by Varun Dua. The company recently received its in principle regulatory clearance to launch a General Insurance business in India. It has received R1 license and has filed for R2 license with the insurance authority.
Prior to founding Acko, Dua co-founded Mumbai-based, online insurance distribution platform Coverfox, along with Devendra Rane in 2013. With this, Dua has moved on from Coverfox to fully operate Acko. (Catamaran Ventures, SAIF Partners, and Accel Partners have earlier backed Coverfox).
As per a company statement, Acko will operate as an independent general insurance company with its entire operations offered through the digital platform. The company will create products and deliver opportunities in areas such as personalised insurance products based on user consumption behaviours.
The Indian fintech market, currently standing at $1.2 B, is forecasted to touch $2.4 B by 2020. Lending and payments, in particular, have also paved the path for this unprecedented growth. In February 2017, Times Internet launched an online insurance distribution platform ETInsure. Other players in this segment include Easypolicy, PolicyBazaar, and BankBazaar among others.
Infosys co-founders NR Narayana Murthy, through family office Catamaran Ventures, and Kris Gopalakrishnan, through Pratithi Investment Trust, also invested, Acko said in a statement.
Other investors who took part in this round are veteran investment banker Hemendra Kothari of DSP Blackrock, Arpwood Capital founder Rajeev Gupta, Venk Krishnan and Subba Rao of NuVentures, and Hexaware Technologies founder Atul Nishar.
Acko said this is one of the largest seed funding rounds for an Indian startup.
The company, which was registered in August 2016, had received $2.5 million in November through a mix of preferential and equity shares, filings to the Registrar of Companies reveal.
“Consumers need to be given more innovative product choices, at a price point that is ‘designed’ for them and at an unparalleled convenience and service levels,” said Vivek Mathur, managing director at venture capital firm SAIF Partners.
RoC filings also reveal that Acko and Coverfox currently share the same office space. Coverfox has raised over $14 million till date. Another insurance tech company is Policybazaar, which has raised a little over $80 million till date.
“With Acko, we want to make insurance so straightforward that consumers don’t need to talk to multiple people to get advice or fill up forms,” said Dua. “Consumers should be able to access low prices in one click based on their risk profile, and be confident that at a press of a button their claim will get paid in the fastest possible time.”