Insurance technology firm Acko Technology and Services is investing $1.2 million in car servicing and repair platform Pitstop. The investment will be made in two tranches.
Set up in 2016, Acko Technology and Services is the holding company of Acko General Insurance, which is a 100 percent digital insurance provider.
In an interaction with Moneycontrol, Ruchi Deepak, co-founder of Acko, said that as the need for contactless transactions and transparency in claims grows, this investment will be helpful in their growth journey. For Acko, the car insurance business is among the biggest business segments.
This is among the first such deals in the insurtech sector where a player from this segment has bought stake in an external-but-related firm.
"We want to capture the end-to-end life-cycle of a car owner from buying car, servicing and selling of the vehicle. Most companies are not able to integrate all these services on one platform. We will be able to do that," said Deepak.
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She added that this will be a minority investment to start with, though she did not disclose the exact quantum of the stake being bought in Pitstop. Deepak will join the board of Pitstop.
Launched in 2015, Pitstop has created an automotive aftermarket service, repair and spares technology platform that service and repair experience in a time-bound manner, using a fleet of doorstep vans, qualified mechanics and a network of more than 250 certified garages in nine cities.
Deepak said that this strategic investment will bolster Acko’s engagement with customers throughout their car ownership life-cycle.
On an immediate basis, she said that the investment will accelerate Acko’s auto claim servicing capability and its promise of three-day, doorstep pickup, repair and delivery.
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Subsequently, Acko will also roll out Pitstop’s value-added services such as doorstep servicing and troubleshooting to its customers to offer more value and help them easily manage their car ownership journey.
Mihir Mohan, CEO and Founder of Pitstop said, “Having Acko as our strategic investor and partner will help us scale operations and allow us to unlock opportunities in the car repair and service market by aligning our resources."
As part of this agreement, all of Pitstop’s technology-enabled garages will be fully integrated with Acko’s claim settlement platform to offer automated and transparent claims assessment and seamless disbursal.
Deepak also explained that the digitised check-in and the seamless link between Pitstop (the garage) and Acko (the insurer) will positively impact the turnaround time for the estimate, approval and the claims settlement, delivering an exceptional customer experience.
She added that Acko was in the lookout for investment in related sectors where there could be synergies with the insurance business.
"We are open to such investment in such entities if they complement our business. With Pitstop, we found that their business focus and execution capabilities matched our needs," she added.
The partnership will currently be operational in four cities of Bangalore, Mumbai, Delhi and Pune. Pitstop will scale operations to locations where Acko is present to integrate their systems and aim to deliver a standardised experience to Acko customers in more than 20 cities.