Amazon invests $12 million in Indian insurance start-up

Online insurance startup Acko Technology and Services has raised $12 million in a fresh round led by Amazon India. The total equity funding in the company, which competes with Coverfox, Digit Insurance and Policybazaar, now stands at approximately $42 million.

The round saw participation from new investors – Ashish Dhawan,  the founder of private equity firm ChrysCap – and existing investor Catamaran Ventures, owned by Narayana Murthy.

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The online insurance platform had raised $30 million in May 2017 from venture capital and angel investors, including Accel Partners, SAIF Partners and Kris Gopalakrishnan.

Founded by Coverfox co-founder Varun Dua in 2016, Acko offers general insurance products such as auto and smartphone insurance on its online platform. It also provides trip insurance to Ola’s customers.

Though Acko does not plan to have offline branches for sales, it will operate offline centres for insurance claims.

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There has been a lot of interest in online insurance space. The most recent  with the Digital payments firm Paytm, which claims to have 300 million users, had also floated two new insurance units in February to offer non-life and general insurance products.

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