The financing also saw participation of existing investors including Amazon, RPS Ventures and Intact Ventures Inc., the corporate venture arm of Canada’s largest property and casualty insurer, Acko said in a statement.
The round has reportedly valued Acko at upwards of $400 million.
Mumbai-based Acko said it plans to use the funds to accelerate its growth in existing lines and expansion into new product lines.
“Munich Re has been a strategic partner to Acko since inception. As one of the largest reinsurance companies globally, their investment shows confidence in our data and technology-driven business model” said Varun Dua, founder and CEO, Acko. “We are happy to have mission-aligned investors who are also helping us with global expertise in insurance and technology,” he added.
Avendus Capital was the advisor to Acko for this fundraise.
Founded by Dua and Ruchi Deepak in 2016, Acko offers general insurance products, including auto, smartphone and travel insurance. The company has also partnered with more than 20 consumer internet players including Amazon, Ola, OYO, Goibibo, RedBus and Urban Company to bring contextual insurance products to market. It claims to have issued over 650 million policies to over 60 million unique customers to date.
Acko had raised $16 million from growth capital provider Ascent Capital last November, after raising $65 million in Series C financing from Binny Bansal, co-founder and former CEO of Flipkart, RPS Ventures, and Intact Ventures in March 2019.
“As Munich Re Ventures’ first investment in India, we look forward to the positive impact that digitally-native insurance solutions will have on the country with Acko leading the way,” said Oshri Kaplan, director, Munich Re Ventures.
Munich Re Ventures, founded in 2015 and headquartered in San Francisco, has made 30 investments in insurtech and new technology companies globally.
Other investors in Acko include Infosys founder Narayana Murthy’s Catamaran Ventures, Accel Partners, SAIF Partners, Infosys co-founder Kris Gopalakrishnan, Hemendra Kothari of DSP Blackrock, Hexaware Technologies founder and chairman Atul Nishar, Ashish Dhawan of ChrysCapital, Swiss Re and Transamerica Ventures.
A slew of startups in the insurance space has emerged in the last few years in India to meet the growing needs of internet-savvy customers.
In January, Go Digit Insurance, which is backed by Canadian billionaire Prem Watsa’s Fairfax Holdings, raised $80 million in an equity funding round led by private equity funds Faering Capital, TVS Capital and A91 Partners. Last December, Toffee Insurance raised $5.5 million in its Series A round of funding led by IVM Intersurer, along with participation from Omidyar Network, Flourish Ventures, Accion Venture Lab, and Kalaari Capital.