Startup general insurer raises US$30m in funding round

Seed funding round for online insurer could be one of the largest in its market’s history

Startup general insurer raises US$30m in funding round

Insurance News

By Gabriel Olano

Acko General Insurance, established by Coverfox co-founder Varun Dua, has raised US$30 million in what could be one of the largest seed funding rounds in India.

The Mumbai-based start-up insurer has received regulatory clearance in principle from the Insurance Regulatory and Development Authority of India (IRDAI) to begin its general insurance business, operating as an independent insurer with its entire operations on the digital platform.

Acko has said that it will use the funds raised in the seeding round to build its technological capabilities, especially in the data analytics and distribution areas. It will also use the funds to market its brand.

Among the investors in Acko are N R Narayana Murthy’s Catamaran Ventures; Venk Krishnan and Subba Rao of NuVentures; Kris Gopalakrishnan, co-founder of Infosys; and Hemendra Kothari of DSP Blackrock. Investment firms Accel Partners and SAIF Partners are also involved.

The company also said in a statement that more investors are expected to join the company due to the rising interest in insurtech in the global arena.

“Insurance world over and especially in India has massive opportunities harnessing technology for lower distribution costs, algorithmic customized pricing and automated claims,” said Dua. “The opportunity is even wider if innovative products which are designed to be consumed online within the internet economy can be made to work in a way that customers find it relevant and easy to access.”

Acko is Dua’s second venture into online insurance, with the first being Glitterbug Technologies. Dua co-founded insurance lead generation platform Coverfox with Devendra Rane in 2013, but later left the company to found Acko.

Rane continues to helm Coverfox, which raised around US$25 million in seed funding.

Related stories:
MetLife recognised for its innovation efforts
Fintech startup heading to Asia
Online insurance platform receives US$14 million investment

Keep up with the latest news and events

Join our mailing list, it’s free!