Acko leads Amazon's renewed investment funding in the Indian subcontinent after the former confirmed a $12 million funding round from the US giant. Acko is a startup in the digital insurance arena. Varun Dua founded the company in 2016 after he co-founded Coverfox, an insurance comparison site.
Founders and the company
Amazon is not the only investor in Acko. Catamaran Ventures and Ashish Dhawan, who founded ChrysCapital, the PE firm, have also poured money into the company. Catamaran was the initial investor. The deal placed about $42 million in the hands of Acko until date. Dua has taken a bolder step with Acko to go for a digital exclusive business with the intention to leverage Indian Internet access rise to democratize the coverage. He also wants to develop new relevant products.
For Acko, things are going excellently. Investors have put in about $30 million in 2016 even before the startup got its insurance license. The company got the license in September. The company now covers automobile insurance policies and “Internet econom”, a new domain since January. Amazon made its move due to the latter. The Internet economy division, as per Dua, is made up of travel sites, e-commerce, and ride-hailing products. The company, in April, began to sell passenger insurance for Indian ride-hailing services like Uber and Ola. This scheme covers subscribers for minor accidents. It also compensates for delays in flights. According to the company, the insurance claim technology is embedded into Ola app for simplification of users.
In an interview, Dua was candid about his tasks. He said that from prior user behavior experiences, it is known that passengers usually contacted Ola to resolve any issues. There was thus a need for a seamless claims process which is reasonably integrated. The head of Acko pointed out that his company has covered approximately 10 million Ola trips until now.
There is a fair chance that Acko will work with the Amazon company for e-commerce coverage. The first focus will be on the protection of different gadgets. It must be said that nothing is finalized yet until now. Dua explained the present as the company is grappling with ideas to find a method for collaboration in the future. He said that Acko is an insurance company which can work with Amazon to create value. Financial services can be bundled and other activities in the lending sphere could happen given the data and numbers at present.