Digital insurance provider Acko has raised $255 million in a new round led by General Atlantic and Multiples Private Equity. The round also saw participation from CPPIB, Lightspeed Growth and existing investors Intact Ventures and Munich Re Ventures.
According to Acko, the fresh funds have been raised at a valuation of $1.1 billion, making it the 34th unicorn this year to pave its way into the coveted unicorn club in India. The company’s total funds raised now stand at $450 million. Previously, it had raised capital from Amazon, Accel, Elevation, Ascent Capital, Intact Ventures, Munich Re Ventures and Flipkart’s co-founder Binny Bansal, among others.
This marks a two-fold jump in the company’s valuation which was valued at around $500 million during its last funding round in September 2020.
Acko plans to use the capital to grow its auto insurance vertical besides micro-insurance products across travel, gadgets and appliances, said the company in a press release.
Acko claims that it has over 70 million customers and has one of the largest market shares in embedded insurance products like mobility and gadget insurance across large digital consumer platforms like Amazon, MakeMyTrip, Ola, Urban Company, Bajaj Finance and others.
In addition, it also covers nearly a million gig workers in the country through partnerships with companies including Zomato and Swiggy.
Acko is the second startup in the insurance space to turn unicorn this year. The company’s direct competitor Digit Insurance became the first unicorn of 2021 and is currently valued at $3.47 billion.
Overall, the Indian startup ecosystem has seen 34 unicorns so far this year and a clutch of startups such as Livspace, Spinny and DealShare are in the pipeline to join in soon. Entrackr had exclusively reported that the three companies are in talks to raise a new round at over $1 billion.