Amazon leads $12m investment round in insurtech Acko

E-commerce giant Amazon has led a $12 million funding round in Acko Technologies, which owns online general insurance provider Acko General Insurance, according to media reports.

The investment by Amazon is its first in India’s insurance services sector and marks the Seattle-based giant’s first step into offering a slew of financial products to consumers, reiterating the broader potential web retailers see in the space, according to Economic Times.

The deal takes Acko to $42 million raised to date, according to TechCrunch. Acko was founded in late 2016 by Varun Dua as a digital-only business.

Investors pumped $30 million into the startup in 2017, before it had acquired a license to offer insurance. Acko now covers the traditional space of automobile insurance policies and a newer category “internet economy” since January. It’s that latter focus that appeals to Amazon via this deal, according to the report. Acko’s pursuit of internet economy deals primarily consists of e-commerce, ride-hailing and travel site-focused products, Dua reportedly said.

In April, Acko partnered with ride-sharing app Ola to offer a first-of-its-kind in-taxi insurance in India.

Customers can purchase an insurance policy worth INR 500,000 ($7.665) for INR 1 ($0.015), covering loss of baggage or laptops, missed flights, accidental medical expense, emergency hotel requirements and ambulance transportation cover, among others.

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