Global ecommerce giant Amazon has led a $12 million funding round in online-only insurance startup Acko. Ashish Dhawan, the founder of private equity firm ChrysCap, also participated in the round along with Catamaran Ventures, the personal investment arm of Infosys co-founder NR Narayana Murthy.
Acko already has backers like Catamaran Ventures, Hemendra Kothari of DSP Blackrock and Accel Partners, among others. The plan is that the company’s interface will completely be online, but for insurance claims there will operate offline centres.
Founded by Varun Dua, one of the co-founders of Coverfox (an insurance comparison site), Acko’s main competition comes from sites like PolicyBachat, PolicyBazaar, Easypolicy and PolicyX.com. At this point, they’re all generating more revenue than Acko.
Varun Dua, CEO, Acko said,“We are thrilled to have Amazon and Ashish Dhawan as our investors. This investment is a validation of Acko’s strategy to innovate ever more for tomorrow’s financial needs of users.”
The startup will be beefing up its technology. It’s heavily tech-intensive, both, operationally and technology-wise, to set up claims across the country. The other thing Acko will do is scale up its marketing efforts and the business overall.
The fresh capital is expected to help the company for about two years as it stands on the verge of coming to the market at the end of 2019 or in early 2020. With this round, the total capital raised by Acko has reached $42 Million.