ACKO, an insurtech start-up, has turned an unicorn with the latest $255 million Series D fundraise led by private equity players General Atlantic and Multiples Private Equity, which is an India-focused PE firm.

This round also included participation from Canada Pension Plan Investment Board and Lightspeed, a global technology focused investment firm, as well as existing investors, Intact Ventures and Munich Re Ventures. An unicorn is a privately held start-up company valued at over 1 billion. This transaction is subject to IRDAI approval and the fundraise values the company at $1.1 billion.

ACKO’s total funds raised now stand at $450 million. Previously, ACKO has raised capital from respected investors including Amazon, Accel, Elevation, Ascent Capital, Intact Ventures, Munich Re Ventures and Flipkart’s co-founder Binny Bansal, among others.

Company profile

Founded in 2016 by Varun Dua and Ruchi Deepak, ACKO Insurance is one of India’s leading digital insurance policy providers with its entire operations offered through the digital platform. ACKO has over 70 million customers, clocking a run-rate of approximately $150 million in premiums, and has a large compounding base who continue to renew with ACKO for their long-term protection needs.

Also read: ACKO raises $60 million in funding

Varun Dua, ACKO’s Founder & CEO , said, “We are thrilled to partner with trusted investors who have a deep understanding of the regulatory environment and bring first-hand experience in working with innovative, high-growth companies.”

The company intends to further invest in the healthcare vertical and scale its team, particularly within technology, product and data science. “We have succeeded on the auto front and will continue to scale and innovate in our flagship auto insurance business,” said Dua. “We also continue to deepen our health strategy and intend to invest over $150 million in the health business in the near future. We believe health insurance products, claims innovation and a deeply connected ecosystem of health services that improve health outcomes for customers are today’s most urgent needs.”

Covering gig workers

ACKO is one of India’s first digital-native insurers and has pioneered the direct-to-consumer auto insurance space in the country. It also has one of the largest market shares in embedded insurance products like mobility and gadget insurance across large digital consumer platforms like Amazon, MakeMyTrip, Ola, Urban Company, Bajaj Finance and others.

In addition, ACKO covers nearly a million gig workers in the country through partnerships with companies including Zomato and Swiggy, with bespoke coverage to protect this large and rapidly growing workforce.

Last year, ACKO entered the significantly under-penetrated health insurance vertical with a differentiated proposition focused on the employer-employee market. Its flagship retail health insurance product is due to launch by early next year.