Binny Bansal also participated in the funding round.
Non-life insurance company Acko has raised $65 million in its Series C financing round from Binny Bansal, co-founder of Flipkart; RPS Ventures, led by Kabir Misra, ex-managing partner at SoftBank; and Intact Ventures Inc. – corporate venture arm of Canada's largest property and casualty insurer.
The round also saw participation from existing investors such as Amazon, Accel, SAIF and TechPro Ventures.
Founded by Varun Dua in 2016, Acko General Insurance, it is among the first digital-only insurance company. It is among the newest entrants to the general insurance sector.
Acko uses a direct-to-consumer approach for distributing motor insurance, to enable favourable risk selection. It also offers small ticket insurance products such as rider insurance, mobile and appliance protection, ticket cancellation etc in partnership with more than 15 players in the internet ecosystem such as Ola, Amazon, redBus, Zomato and UrbanClap.
The insurer, that has completed 12 months of operations, has distributed insurance policies to over 20 million customers.
“The current round of funding demonstrates the confidence investors have in us and in our ability to transform how insurance will be delivered. We are excited to put the company on a rapid growth trajectory with this round of funding. Insurance is a capital intensive sector and as we grow, we will be raising more capital in compliance with the guidelines of the regulator” said Varun Dua, Founder and CEO, Acko.
Talking about this investment, Binny Bansal said, "Technology led insurance is expected to play a significant role in growth of the underpenetrated insurance sector in India." He further added, “Acko is the pioneer of digital-native insurance and I am delighted to partner in its exciting growth journey”
With this latest round of Series C funding, Acko’s total funds raised stands at $107 million. Avendus Capital was the advisor to Acko on this fundraise.Previously, Acko raised $30 million in seed funding, one of the largest seed rounds in the Indian startup ecosystem, and later raised Series B funding of $12 million led by Amazon.