E-commerce giant Amazon is leading a $12-million funding round in online-only insurance startup Acko General Insuranceas the e-commerce major takes a bet on the financial services segment in India. Ashish Dhawan, the founder of private equity fund ChrysCapital, has also joined the latest round, along with existing investor N R Narayana Murthys Catamaran Ventures.
The investment by Amazon is its first in India's insurance services sector and marks the Seattle-based giants first step into offering financial products to consumers. Amazons negotiations with Acko were first reported by The Times of India.
The Mumbai based Acko had spun off in 2016 as an independent entity after a restructuring at online insurance aggregator Coverfox, which saw its co-founder and CEO Varun Dua step down to kick-start the insurtech platform.
Amazons rival Flipkart had also expressed interest in investing in Acko. According to Dua, fresh capital is likely to give a runway of about two years, with the company expected to hit the market at the end of 2019 or in early 2020.