Acko General Insurance, established by Coverfox co-founder Varun Dua, has raised US$30 million in what could be one of the largest seed funding rounds in India.
The Mumbai-based start-up insurer has received regulatory clearance in principle from the Insurance Regulatory and Development Authority of India (IRDAI) to begin its general insurance business, operating as an independent insurer with its entire operations on the digital platform.
Acko has said that it will use the funds raised in the seeding round to build its technological capabilities, especially in the data analytics and distribution areas. It will also use the funds to market its brand.
Among the investors in Acko are N R Narayana Murthy’s Catamaran Ventures; Venk Krishnan and Subba Rao of NuVentures; Kris Gopalakrishnan, co-founder of Infosys; and Hemendra Kothari of DSP Blackrock. Investment firms Accel Partners and SAIF Partners are also involved.
The company also said in a statement that more investors are expected to join the company due to the rising interest in insurtech in the global arena.
“Insurance world over and especially in India has massive opportunities harnessing technology for lower distribution costs, algorithmic customized pricing and automated claims,” said Dua. “The opportunity is even wider if innovative products which are designed to be consumed online within the internet economy can be made to work in a way that customers find it relevant and easy to access.”
