Digital insurance provider Acko has raised about $36 million from existing backer Binny Bansal and private equity firm Ascent Capital. Bansal has invested $20 million in the Mumbai-based startup, while the remaining amount was pumped in by Ascent in a round that may close at about $45 million.
This is the second investment for the Mumbai-based startup in 2019. Bansal and former Softbank managing partner Kabir Mishra-led RPS Investment Fund had led $65 million round in March.
Backed by the likes of Amazon, Accel Partners and SAIF Partners, Acko counts itself among the coveted startups that have raised a massive amount of $30 million as seed capital. Typically seed funding ranges between $10,000 to $2 million.
Led by serial entrepreneur Varun Dua, Acko utilises data and analytics to provide highly personalised direct-to-consumer automotive insurance products. Acko also works with third parties to offer micro-insurance facility around services of other brands. For instance, it has tied up with Ola to insure the rides and partnered with OYO for insuring the stay of consumers.
Amazon, redBus, Zomato, UrbanClap and close to other 15-20 digital partners, across travel, cab-hailing, and e-commerce category, have a similar partnership with the insurance tech firm. Besides, Acko also offers contextual bite-sized solutions for digital consumers, such as screen protection for smartphones.
With over 45 million registered users, Acko claims to have achieved a Gross Written Premium (GWP)) of $20 million in FY19 and targeting 3X growth in FY20.
Meanwhile, the government’s recent move to hike penalties and fines under the Motor Vehicle Act has led more people to insure their automobiles. Eventually, online insurance platforms like Acko has been gaining more traction as well as receiving faith from consumers who are shifting online to insure their vehicle.
Apart from non-life insurance, Acko has been working for the past 10 months on a new product called AckoDrive, which essentially lets users buy new cars online across Delhi (NCR), Mumbai, and Bengaluru.
AckoDrive acts as a virtual dealer that owns the entire experience right from discovery to delivery. To further augment its auto ecosystem, Acko had acquihired Mumbai-based car retailing platform VLer.
Update: The story and headline has been updated with details of Binny Bansal participation in the round