Amazon has led a $12mn funding round in Indian digital InsurTech start-up, Acko General Insurance.
The latest investment takes Acko’s total external funding to nearly $42mn and comes a year after the start-up raised $30mn from a clutch of investors including SAIF Partners and Accel Partners.
The latest funding round, which pegs Acko’s valuation at about $100mn, also saw investments from Ashish Dhawan, founder of private equity fund ChrysCapital, and Narayana Murthy, founder of investment firm Catamaran Ventures.
Acko was founded in late 2016 by Varun Dua as a digital-only business that leverages data and analytics to provide personalised insurance products through its online platform, as well as general and auto insurance.
Dua commented: “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.”
Amit Agarwal, senior vice president and country manager for Amazon India, said: “Acko is a young and nimble start-up bringing technology and data-led innovation to the insurance sector to deliver a better insurance experience for customers.
“We are excited to back companies that are focused on using technology for enhanced customer experience and are led by missionary founders and management teams. We look forward to be a part of their growth journey.”
The investment by Amazon is its first in India’s insurance services sector and marks the e-commerce giant’s first step into offering a slew of financial products to consumers, reiterating the broader potential web retailers see in the space.
Earlier this year, Amazon invested Rs 144 crore ($21mn) in online lending company Capital Float, and also picked up a minority stake in financial services marketplace BankBazaar in 2015.