Thu. Mar 28th, 2024

Mumbai-based Acko General Insurance, which was set up by Coverfox founder Varun Dua, has received final license from the insurance regulator.

The startup is now looking to start operations by December, and will mostly focus on selling auto, travel and health insurance products to retail customers.

Earlier this year, the company had announced its seed funding round, in which it managed to raise about ₹200 crore from Narayana Murthy and Kris Gopalakrishnan of Infosys, DSP Blackrock’s Hemendra Kothari, Hexaware’s Atul Nishar and Arpwood’s Rajeev Gupta besides venture capital firms SAIF Partners and Accel India.

The company will spend significantly on building technology, especially in data analytics, and in distribution. It will also spend raised money on marketing since Acko is a new brand.

Acko had filed its application in November 2016. Varun Dua CEO designate Acko General Insurance, said,

We have received final license within a year of filing the application. We are looking to start operations by December, selling multiple products through online channel. We will start with four branches.

Now, the company says that it will roll out platform for distribution partners soon. As per Varun Dua. 50 percent of the business will come through online. He said that the company would not require capital for next two years.

The general insurance industry is relatively less cash intensive than the life insurance industry. The companies in this sector turn profitable in around five-seven years.

Prior to Acko, Varun Dua had founded Coverfox — a web aggregator and online distributor for primarily motor insurance, health and life insurance. Coverfox has also raised Series A and B funding from SAIF partners, Accel India and Narayan Murthy’s Catamaran Ventures.

By Jeet