Indian insurer Acko is in late-stage talks to secure $120 million in a funding round at a time when weak global market conditions have dampened major funding talks in the South Asian market.
General Atlantic is in talks to funnel a $120 million round to Acko, the first tranche of which is about $100 million, a source familiar with the matter said. The round values the Indian startup at $1.5 billion, said the source, who asked for anonymity because the matter is private. The round could close in a few weeks, but there is still the possibility that the terms of the deal will change slightly, the source said.
Acko, which became a unicorn in October 2021, has been on the market for at least eight months raising new capital, people familiar with the matter said. ukbusinessupdates.com previously reported that General Atlantic was in talks with Acko to increase its stake in the insurtech company.
The New York-based growth equity investor — which has backed a number of Indian companies over the past decade, including Jio, BillDesk, Byju’s, PhonePe, Amagi, NoBroker and Unacademy — plans to invest at least 2 to deploy $3 billion in India. next five to seven years, according to experts.
Acko and General Atlantic declined to comment.
Acko — which counts Amazon, Lightspeed Venture Partners India and CPPIB as existing backers — is among a handful of startups trying to tackle the country’s aging insurance industry with a digital-first product.
It develops and markets bite-sized auto insurance products (aimed at drivers and others in transportation-related scenarios), health care protection for employers, and gadget protection.
The startup has distribution partnerships with a number of companies, including Amazon, travel and hotel booking platform MakeMyTrip, taxi company Ola, insurance giant Bajaj Finance, Urban Company and fintech CRED.
