Acko is in discussions to obtain a fresh round of funding valued at over $2 billion

• ByStartupStory     |    June 20, 2022

Digital insurance startup Acko is in late-stage talks to raise a fresh round from new and current investors with a value premium of over 2X. For the past several months, Prosus (previously Naspers) has been in negotiations with Acko to lead a fresh investment round. The discussions have reached a conclusion, and Prosus is expected to lead the new round with over $200 million.

This would be the Bengaluru-based firm’s first round in 2022. In October of last year, Acko secured $255 million from General Atlantic and Multiples Private Equity at a valuation of $1.1 billion. Amazon, Accel Partners, Catamaran Ventures, Elevation Capital, RPS Ventures, and Binny Bansal are among the company’s investors. It has received $450 million to far.

The firm will be valued between $2 – $2.3 billion dollars. While automobiles are Acko’s main category, the company’s expansion in electronics and corporate health insurance has made Acko appealing to investors. Varun Dua, Acko’s co-founder and chief executive officer (CEO), declined to comment on the report. Prosus did not respond to any of my questions very away. 

Acko has worked with top Indian firms such as Amazon, Ola, MakeMyTrip, Zomato, OYO, and RedBus to offer travel insurance, gadgets coverage, and hotel-stay insurance in addition to motor and health insurance. Acko also stated that it had over 70 million clients during the last financing.

Unlike typical insurance companies, Acko sells directly to consumers and passes on the cost savings of eliminating the middleman. Early this year, the firm began offering individual and group health insurance. While Acko has yet to release its annual financial report for FY22, it reported operating revenue of Rs 209 crore in FY21, up from Rs 195 crore the year before. From Rs 188 crore in FY20, the firm was able to reduce its losses to Rs 132.5 crore in FY21.

Follow Startup Story