Acko Insurance
Acko General Insurance Limited (ACKO) is a technology-driven, digital-first general insurance company headquartered in Bengaluru, India, founded on November 3, 2016, as the country's first fully online insurer without physical branches.[1][2][3] Established by Varun Dua (CEO and Managing Director), Vishwanath Ramarao, and Ruchi Deepak, ACKO operates a direct-to-consumer model, offering products including motor insurance (car and bike), health insurance, life insurance, travel insurance, and coverage for electronics and other assets, all distributed exclusively through its mobile app and website with features like transparent pricing, zero commissions, and paperless claims processed in under 24 hours.[2][1][3] The company has achieved rapid growth, becoming an insurtech unicorn in 2021 with a valuation over $1 billion, backed by investors such as Amazon and Accel, and has served more than 78 million customers while issuing over a billion policies as of September 2024.[2][4][5] In FY24 (ending March 2024), ACKO reported total revenues exceeding INR 2,000 crore, with gross written premiums rising 32% year-over-year to INR 1,587 crore, underscoring its position as one of the fastest-growing insurers in India despite ongoing net losses common in the insurtech sector.[6]Overview
Founding and Operations
Acko Insurance, officially known as Acko General Insurance Limited, was founded on November 3, 2016, in Bengaluru, Karnataka, India, as a private sector general insurance company aimed at disrupting the traditional insurance landscape through digital innovation.[7][8] The company was established by Varun Dua, Ruchi Deepak, and Vishwanath Ramarao, with a vision to simplify insurance access via technology.[3][2] Headquartered in Bengaluru, Acko operates as a fully online digital platform without any physical branches, enabling seamless customer interactions through its mobile app and website.[9][10] From its inception, the company adopted a direct-to-consumer (D2C) model, leveraging advanced technology such as data analytics and AI to streamline insurance distribution and eliminate intermediaries.[11][3] Acko received its license from the Insurance Regulatory and Development Authority of India (IRDAI) on September 18, 2017, which allowed it to commence official operations as a general insurer.[12][13] This regulatory approval marked a pivotal step, enabling the rollout of its digital-first services focused on auto, health, and travel insurance products. As of 2025, Acko employs approximately 1,700 people and serves over 78 million customers through its digital channels, underscoring its rapid growth and operational scale in India's insurtech sector.[14][15]Business Model
Acko Insurance operates on a direct-to-consumer (D2C) model that bypasses traditional agents and brokers, enabling lower operational costs and accelerated service delivery to customers.[2][16] This approach allows the company to offer insurance products directly through its digital platform, reducing overheads associated with intermediary commissions and streamlining the purchasing process for end-users.[17] By eliminating these middlemen, Acko achieves cost efficiencies that translate into competitive pricing and faster policy issuance, often within minutes.[2] Central to Acko's model is the integration of artificial intelligence (AI), data analytics, and mobile applications to personalize insurance policies, process claims, and enhance customer engagement. The company employs AI-driven algorithms for underwriting and predictive analytics to assess risks and tailor coverage options based on individual customer data, such as driving behavior or health metrics.[18] Mobile apps facilitate seamless interactions, allowing users to obtain instant quotes, manage policies, and file claims digitally without paperwork.[19] This technology stack supports 24/7 customer support and real-time engagement, fostering higher retention through proactive notifications and customized recommendations.[20] Acko further differentiates its model through embedded insurance integrations with e-commerce and ride-sharing platforms, embedding coverage options directly into partner ecosystems for convenient access. For instance, partnerships with companies like PhonePe, Tesla, and Amazon enable users to purchase insurance alongside related services, such as vehicle purchases or digital payments, expanding distribution without traditional marketing channels.[21][22] These collaborations leverage APIs for seamless integration, allowing Acko to reach millions of users at the point of need.[23] The company's primary revenue streams derive from premiums collected on issued policies, supplemented by partnership fees for distribution through embedded channels and income from value-added services such as repair networks. Premiums form the core, with Acko's revenue reaching ₹2,106 crore in FY24 (ending March 2024), driven by high-volume digital sales.[2][24] Partnerships contribute through revenue-sharing arrangements, while services like partnered repair facilities add ancillary earnings by handling post-claim support.[17] This diversified structure supports scalability in a competitive market. Key differentiators include fully paperless processes, instant quote generation, and round-the-clock digital support, which set Acko apart from legacy insurers reliant on physical branches and manual handling. These features ensure transparency and efficiency, with claims often approved in hours via app-based verification, enhancing user trust and operational speed.[19]History
Inception and Early Development
Acko General Insurance Limited was incorporated on November 3, 2016, by Varun Dua along with co-founders Vishwanath Ramarao and Ruchi Deepak, with the vision of creating India's first fully digital insurance provider.[8][25] The company was incorporated in Mumbai, with headquarters in Bengaluru, to address inefficiencies in the traditional insurance sector through technology-driven solutions, focusing on direct-to-consumer distribution without intermediaries.[26] In the pre-license phase, Acko raised $30 million in seed funding in May 2017 from investors including Accel Partners, SAIF Partners, and family offices such as those of Infosys co-founder Kris Gopalakrishnan, enabling the development of its proprietary technology platform.[27] This funding supported the building of a digital infrastructure for policy issuance, claims processing, and customer servicing, all conducted via mobile apps and web interfaces to minimize paperwork and commissions.[28] However, the startup faced significant regulatory hurdles in securing approval from the Insurance Regulatory and Development Authority of India (IRDAI), including stringent capital requirements of at least ₹100 crore and compliance with complex solvency norms typically met by established players with legacy assets.[26] As a new entrant without prior insurance operations, Acko navigated a multi-stage application process involving in-principle approvals (R1 and R2) before obtaining the final operating license (R3).[28] The IRDAI granted Acko its final license on September 18, 2017, allowing the company to officially launch operations as a general insurer.[28] In its early months, Acko concentrated on motor insurance pilots, targeting two-wheeler and four-wheeler policies through partnerships with e-commerce platforms and ride-sharing services to test its digital claims and renewal processes.[29] This initial emphasis on motor insurance, which accounts for over 70% of India's general insurance premiums, helped validate the platform's efficiency in a high-volume segment while continuing to enhance backend algorithms for risk assessment and fraud detection.[30] In 2018, Acko secured its first major post-launch funding round of $12 million led by Amazon.[31]Key Milestones and Expansion
In 2018, Acko launched its full motor insurance products, marking the company's initial foray into comprehensive car and bike coverage following its regulatory approval the previous year. This launch enabled rapid adoption through a digital platform, initially focused on urban markets before expanding operations to multiple cities including Bengaluru, Mumbai, and Delhi NCR to broaden accessibility.[2] The introduction of Acko Drive in 2019 represented a significant expansion into automotive services, complementing insurance offerings with car purchase facilitation and maintenance support in partnership with local dealerships. This initiative aimed to create an integrated ecosystem for vehicle owners, starting in Bengaluru and gradually scaling to other regions.[2] In 2021, Acko achieved unicorn status following its Series D funding round, valuing the company at over $1 billion and underscoring its growth in the digital insurance sector. This milestone highlighted the company's ability to attract major investors and scale operations amid increasing market penetration.[32] Between 2022 and 2024, Acko entered the health insurance market, initially with corporate plans in 2020 but expanding to retail offerings by 2023, and launched life insurance products in September 2024 with the Acko Life Flexi Term Plan to address evolving customer needs for flexible coverage. During this period, the company formed strategic partnerships with used-car platforms such as Zoomcar, Spinny, and Cars24, enhancing distribution channels and integrating insurance with vehicle transactions to drive user acquisition. In October 2024, Acko appointed Sandip Goenka as CEO for Acko Life; however, he stepped down in October 2025.[2][33][34][35][36] Concurrently, Acko Drive expanded to 12 cities, including Delhi NCR, Mumbai, and Chennai, while establishing repair centers in Bengaluru to support cashless services and post-warranty maintenance.[37] By 2025, Acko continued its digital scaling efforts, leveraging AI-driven processes to serve over 78 million customers and issue millions of policies, reflecting sustained growth in user base and operational efficiency. In May 2025, the company faced a ₹1 crore regulatory fine from IRDAI for outsourcing and commission violations related to partnerships, though this did not impact policy validity.[3][38]Products and Services
Core Insurance Offerings
Acko Insurance provides a range of general and life insurance products, primarily distributed through its digital platform, focusing on motor, health, and supplementary covers. These offerings emphasize ease of purchase, customization, and quick claims processing, catering to individual and family needs in India.[2]Motor Insurance
Acko's motor insurance portfolio includes comprehensive policies for cars and two-wheelers, combining third-party liability coverage—mandatory under Indian regulations—with own-damage protection for vehicle repairs due to accidents, theft, or natural calamities. These policies cover vehicles against collisions, fire, and vandalism, with sum insured limits typically ranging from ₹1 lakh to several crores based on the vehicle's invoice value. For two-wheelers, similar comprehensive plans protect against road risks, including engine damage from water ingress during monsoons.[39] Add-ons enhance these base policies, such as zero depreciation cover, which reimburses 100% of repair costs without deducting for vehicle age or wear, eliminating out-of-pocket expenses for parts like bumpers or tires. Other popular riders include roadside assistance for towing or fuel delivery up to 100 km and return-to-invoice cover, which compensates the original purchase price in case of total loss rather than the depreciated value. Acko reports a 99.10% claims settlement ratio for motor own-damage claims in FY 2023-24, with many processed digitally within hours.[40][41]Health Insurance
Acko offers individual and family floater health plans that cover in-patient hospitalization expenses, including room charges, doctor fees, and ICU stays, with sum insured options from ₹5 lakhs to ₹1 crore. These policies extend to outpatient department (OPD) consultations for routine check-ups and diagnostics, as well as critical illness riders protecting against several major conditions, such as cancer, heart attacks, and kidney failure, providing lump-sum payouts upon diagnosis. Maternity coverage is included in select family plans, reimbursing delivery costs after a waiting period.[42] Plans feature no co-payment clauses for most treatments and cashless hospitalization at over 14,000 network hospitals across India. Acko's health claims settlement ratio stood at 96.29% for FY 2023-24, with digital approvals enabling settlements in under 30 minutes for eligible cases. Pre-existing disease coverage begins after a 2-4 year waiting period, and annual health check-ups are complimentary for policyholders.[43]Other General Products
Beyond motor and health, Acko provides in-trip domestic travel insurance covering trip delays, baggage loss, and medical emergencies during journeys within India, with premiums starting at ₹49 for short trips and benefits up to ₹50,000 for personal accidents. This includes protection for flight cancellations due to weather or strikes, reimbursing non-refundable expenses.[44] Mobile device protection plans safeguard smartphones and gadgets against accidental damage, liquid spills, and theft, offering screen repairs or full replacement up to the device's depreciated value. These micro-insurance products, often bundled with e-commerce purchases, feature instant activation via app and claims settled through on-site service centers.[45][46]Life Insurance
Through its subsidiary Acko Life Insurance, launched in September 2024, Acko offers term life plans providing pure protection against death or terminal illness, with coverage up to ₹10 crores and flexible tenures from 10 to 40 years. The flagship Acko Life Flexi Term Plan allows policyholders to adjust sum assured or term mid-policy without new underwriting, accommodating life events like marriage or parenthood. Riders for accidental death and critical illness add lump-sum benefits up to 100% of the base cover.[47][48] Savings-oriented products include endowment plans, which combine life cover with guaranteed maturity benefits, returning premiums plus bonuses if the policyholder survives the term, ideal for goal-based savings like education funding. These plans offer tax deductions under Section 80C of the Income Tax Act, with returns projected at 4-6% annually. Acko Life maintains a high claims settlement ratio, emphasizing paperless processing.[49]Customization Features
Acko's products support digital customization through app-based riders, such as adding personal accident cover or zero-liability options at purchase or renewal. Instant renewals are facilitated via one-click processes, avoiding lapses and preserving no-claim bonuses. High digital approval rates—over 90% for straightforward claims—stem from AI-driven assessments, reducing paperwork and enabling payouts directly to bank accounts within 24 hours. Integration with initiatives like Acko Drive streamlines motor claims for policyholders using partnered services.[2][50]Acko Drive Initiative
Acko Drive was launched in April 2019 as an online platform facilitating car buying and servicing, aiming to provide a digital, end-to-end solution for vehicle acquisition beyond traditional dealership experiences.[51] The initiative marked a key expansion for Acko Insurance into the broader auto ecosystem, integrating sales with ancillary services to streamline the ownership journey.[52] Key features of Acko Drive include comprehensive end-to-end car purchases, where users can browse inventory, secure deals, and arrange delivery digitally. Financing options were introduced in 2022, enabling seamless loan applications and approvals within the platform to support accessible ownership. Additionally, repair services are offered at dedicated centers, starting with two in Bengaluru in 2024 and expanded to additional cities including Ahmedabad by mid-2025, with plans for up to 100 centers across major urban areas; in October 2025, a flat ₹3,999 full car service package was launched to enhance affordability.[53][54][55][56] By late 2024, Acko Drive had expanded to 12 cities, including Delhi NCR, Mumbai, and Chennai, with further growth to Ahmedabad in June 2025, ensuring wider accessibility for urban consumers seeking integrated auto solutions.[57][52] The platform collaborates with partners like Zoomcar, Spinny, and Cars24 to enhance inventory availability and logistics efficiency.[58][59] A core aspect of Acko Drive is its integration with Acko Insurance, allowing for bundled motor policies during purchases and streamlined claims handling through the same digital interface, reducing friction in post-sale support.[60]Funding and Valuation
Investment Rounds
Acko Insurance began securing funding in late 2016 with an initial undisclosed round estimated at $2.5 million, which supported early platform development.[61] The company followed this with a seed round on May 23, 2017, raising $30 million to advance its digital infrastructure and operational setup.[62] In its Series A round on May 27, 2018, Acko raised $12 million, bringing cumulative funding to approximately $44.5 million and enabling regulatory licensing and product launch preparations.[63] The Series B round, completed on March 13, 2019, secured $65 million to drive product diversification and market penetration.[64] A subsequent venture round on November 28, 2019, raised $36 million from Ascent Capital and Binny Bansal to support ongoing growth and operations.[65] A Series C infusion of $60 million arrived on September 15, 2020, focused on technology scaling and enhancing backend capabilities.[66] The pivotal Series D round on October 27, 2021, raised $255 million at a $1.1 billion post-money valuation, marking Acko's entry into unicorn status and supporting broader growth initiatives.[32] Subsequent primary rounds included $137 million in 2023 from Multiples Alternate Asset Management and Lightspeed, aimed at fueling expansion.[67] This was followed by a $120 million secondary transaction on October 23, 2024, where existing investors sold stakes.[67] Acko's latest private equity round on July 30, 2025, was for an undisclosed amount, with total primary funding across 10 rounds reaching approximately $595 million as of that date.[68]| Round | Date | Amount Raised | Purpose | Type |
|---|---|---|---|---|
| Initial | Late 2016 | ~$2.5M | Platform development[61] | Primary |
| Seed | May 23, 2017 | $30M | Platform development[62] | Primary |
| Series A | May 27, 2018 | $12M | Licensing and launch[63] | Primary |
| Series B | March 13, 2019 | $65M | Product expansion[64] | Primary |
| Venture | November 28, 2019 | $36M | Growth and operations[65] | Primary |
| Series C | September 15, 2020 | $60M | Tech scaling[66] | Primary |
| Series D | October 27, 2021 | $255M | Achieving unicorn status[32] | Primary |
| Later-stage | 2023 | $137M | Expansion toward growth[67] | Primary |
| Secondary | October 23, 2024 | $120M | Investor liquidity | Secondary |
| Private Equity | July 30, 2025 | Undisclosed | General contribution[68] | Primary |