ACKO, a Bengaluru-based insurtech unicorn, has been granted a license by the Insurance Regulatory and Development Authority of India (IRDAI) to commence life insurance business, making it one of the few life insurers in India. The approval also marks the addition of a new life insurance company after a gap of 12 years, with the last one being Edelweiss in 2011. Credit Access, a microfinance company, was also approved to start a life insurance business. With the addition of ACKO and Credit Access, the number of life insurers in India has now increased to 25. ACKO, which is backed by Amazon, Accel, General Atlantic, and CPPIB, provides digital insurance policies and claims to have one of the largest market shares in embedded insurance products. However, the startup’s net loss increased 3X to INR 382.3 Cr in FY22, while its revenue increased 2.29X to INR 1,087.5 Cr during the year from INR 475.3 Cr in FY21. ACKO claims to have a significant market share in embedded insurance products, such as mobility and gadget insurance, across various digital consumer platforms. The startup partners with several companies, including Amazon, MakeMyTrip, Ola, Urban Company, Bajaj Finance, Zomato, and Swiggy, to provide insurance coverage to their customers. Additionally, the startup covers nearly a million gig workers in India through its partnerships with Zomato and Swiggy.
ACKO, which is backed by Amazon, Accel, General Atlantic, and Canada Pension Plan Investment Board (CPPIB), became a unicorn in 2021 after raising $255 Mn. The insurtech startup is reportedly close to raising up to $150 Mn from existing investors, and some reports suggest that the company could be valued at $1.5 Bn in its latest funding round. According to Economic Times (ET), Lightspeed Venture Partners and Multiples Private Equity are also interested in participating in the fundraise, along with General Atlantic and CPPIB.