Amazon-backed Acko reaches $120M in funding led by General Atlantic

Acko, an Indian insurtech company backed by leading U.S. e-commerce and tech giant Amazon, is reportedly in late-stage negotiations to acquire $120 million in a funding round at a point where the South Asian industry's significant finance discussions have been muted by bad global economy.

According to sources, General Atlantic, the American private equity firm, is in discussions to head a $120 million investment round for Acko, the first phase of which will be roughly $100 million. As per an anonymous spokesperson, this funding round has placed the Indian startup at $1.5 billion.

The source stated that although the round may end in a matter of weeks, there is still a chance that the deal's conditions may be marginally altered.

Acko, which turned into a unicorn in October 2021, has been looking to raise money for at least eight months. General Atlantic was negotiating with Acko to extend its shareholding in the insurtech company.

As per sources familiar with the matter, the New York-based growth equity investor, which has backed several Indian companies over the past ten years, such as Jio, Byju's, BillDesk, Amagi, PhonePe, NoBroker, and Unacademy, intends on investing at least $2 billion to $3 billion in India within the following five to seven years.

For the record, Acko is one of a few startups seeking to compete with the nation's outdated insurance market with a digital-first solution. It currently has backing from Amazon, CPPIB, and Lightspeed Venture Partners India.

It creates and markets bite-sized auto insurance solutions for drivers and anyone involved in transportation-related situations, in addition to healthcare safeguards for employers as well as gadget protection.

The company has distribution agreements with other companies, such as Amazon, travel and hotel booking site MakeMyTrip, insurance giants Bajaj Financial, ride-hailing firm Ola, online home services platform Urban Company, as well as fintech CRED.

Source credit: https://techcrunch.com/2023/03/28/amazon-backed-acko-nears-120-million-in-new-funding/