After the pandemic, most individuals prioritize their health and invest in various insurance plans to attain a sense of security during these uncertain times. According to Forbes, approximately 68% of life insurance owners feel financially secure after they purchase insurance. On the other hand, ACKO, an insuretech startup, is attaining recognition for its digital insurance approaches in India. Notably, ACKO is India’s first digital insurer company with over 50 million unique customers.
The Founding Story of ACKO
As mentioned, ACKO is a general insurance company that offers instant policies, customized prices, and super-quick claim settlements to streamline the entire insurance process for users. In the past few years, ACKO has collaborated with many reputed businesses in the market, including Ola, redBus, Amazon OYO, etc.
In addition, the brand has launched many popular and innovative products like trip insurance, hotel-stay insurance, and electronics cover. Last year, one of their products, Ola Trip Insurance, which insures cab passengers, was awarded the Golden Peacock Innovative Product.
ACKO was founded in 2016 by Varun Dua, a serial fintech entrepreneur who had also served as the CEO of India’s prominent online insurance aggregator, Coverfox, before he launched ACKO. The founder always has the vision to use the internet creatively to sell insurance to different individuals. As a result, Varu Dua along with Ruchi Deepak got the motivation to launch ACKO in the market.
Fundings of ACKO:
In 2023, Digital insurance provider ACKO experienced an increase in its overall scale. However, the overall rate at which the brand grew was slower than in 2022. In 2022, ACKO grew 2.3X due to the funding of $225 million received in October 2021. This funding has also enabled the startup to earn the “unicorn startup”; badge, which means the company has successfully marked an evaluation of over $1 billion in the market.
According to ACKO’s consolidated annual financial report, the platform witnessed a significant growth rate of 31.9% to Rs 1,759 crore in FY23 from Rs 1,334 crore in FY22 in its revenue from its operation. As a digital insurance provider, ACKO earns its money from (67.4%) premium customers pay, allowing the brand to reach Rs 1,185 crore in
the fiscal year 2023. In addition to achieving the milestone of 185 crores, the platform has successfully earned Rs 38 crores from interest and profits generated by selling investments it had at that time. we have already discussed about ACKO in detail in our write up.
Wrap Up
ACKO is a digital insurance provider brand and one of the fastest- growing companies in the market. Such a brand offers many products, including trip insurance, hotel-stay insurance, electronics cover, etc. The brand has received many awards for its innovative products, like Ola Trip Insurance, which was honored as the Golden Peacock
Innovative Product last year. Additionally, the brand was recognized as the winner in the Insurance and Savings category by Financial Express. Collaborations with industry giants like Ola and Amazon exemplify ACKO’s influence. The recent funding injection propelling it to unicorn status highlights its promising trajectory, with substantial revenue growth affirming its formidable digital insurance provider position.
