Acko raises largest seed funds; becomes trailblazer for digital insurance in India
After receiving its in-principal approval to launch general insurance business in India, Acko General Insurance raised $ 30 million, making it one of the largest seed funding rounds for a startup in India. The startup is backed by Narayanmurthy’s Catamaran Ventures, Venk Krishnan and Subba Rao of NuVentures, Kris Gopalakrishnan, Co-founder Infosys, Hemendra Kothari of DSP Blackrock, Atul Nishar, Founder and Chairman of Hexaware Technologies, Rajeev Gupta, veteran investment banker and Founder of Arpwood Capital, Accel and SAIF Partners.
Insurance products offered online
Operating as an independent general insurance company, the firm’s entire operations will be offered through the digital platform. They will seek to create products and deliver opportunities in areas where they see gaps, like those in personalized insurance products based on consumption behaviors.
Disrupting the financial services industry in India
According to Acko founder Varun Dua, insurance in India and across the globe has huge scope for lowering distribution costs by leveraging technology, and using algorithmic customized pricing and automated claims. This opportunity is amplified if the innovative products, designed to be consumed online in the internet economy space, can be made to function in a way that consumers find easy and relevant.
Technology disrupting the global insurance ecosystem
Countries like the US, China and many European countries have seen massive funding with startups capturing niche markets, disrupting various parts of the value chain and focusing on millennials who demand for simple, customized and transparent ways of handling their insurance. Oscar Health and Lemonade in the US and Zhong An in China have recently become unicorns capitalizing on the thriving industry.