Acko had previously raised $30 million in seed funding and later $12 million in a Series B round led by Amazon.
Acko General Insurance has raised $65 million from Flipkart co-founder Binny Bansal, RPS Ventures led by Kabir Misra, ex-managing partner at SoftBank, and Intact Ventures. Existing investors such as Amazon, Accel, SAIF and TechPro Ventures have also participated in the Series C round, the firm said in a release on Wednesday. With this latest infusion, Acko has now attracted $107 million. Previously, Acko had raised $30 million in seed funding and later $12 million in a Series B round led by Amazon.
In a recent interview with FE, Dua had said the company is aiming to break-even in its fourth to fifth year of operations. “We are still 18 months old. Typically, general insurance companies take seven to eight years to break-even. Given the kind of model we have, we target to break-even in the fourth to fifth year of operations,” he explained.
Dua noted one big advantage of buying a policy from Acko is that it’s cheaper. “About 80% of customers find our products to be 10-30% cheaper. Moreover, in the top 10-12 cities of the country, we are able to guarantee a claim-settlement in a turnaround time of three days. We pick up the car, get it repaired and deliver it back to the policyholder — all in three days. We are expanding this service to other cities also,” Dua said.
“Technology-led insurance is expected to play a significant role in the growth of the underpenetrated insurance sector in India. Acko is the pioneer of digital-native insurance and I am delighted to partner in its exciting growth journey,” Binny Bansal said.
“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,” Dua said in the release.