Acko that owns Acko General Insurance, an online insurance provider, has raised $12 million (INR 81.27 crores) from e-commerce retail giant Amazon. The PE firm ChrysCapital & Catamaran Ventures, a principal investment firm belonging to N.R.Narayana Murthy, the Infosys founder, also took part in this round of funding alongside Amazon. This is the first time Amazon Inc. has invested in an insurance company in India.
“We will be beefing up the technology. It’s heavily intensive, both, operationally and technology-wise to set up claims across the country. The other will be to scale up our marketing efforts and the business overall”, said Varun Dua, CEO of Acko in a statement to Economic Times.
Coverfox also co-founded by Varun Dua has raised $22 million (INR 145 crore) in its Series C round led by Transamerica, and International Finance Corp (IFC). Investors who backed Acko also invested in Coverfox primarily.
In a statement, Amit Agarwal from Amazon India (Country Manager, and Senior VP) expressed that, “Acko is a young and nimble startup bringing technology and data-led innovation to the insurance sector to deliver a better insurance experience for customers”.
With Flipkart expressing its interest to invest in Acko, it will be interesting to see to what extent Flipkart will likely to invest. In October 2017, Acko received a license from IRDA to sell non-life insurance products.