The funds will also be used to develop new insurance products, to offer them to clients, as well as to foster partnerships in the wider health economy, including with hospitals.
Acko will likely consider a public listing in 2023 or 2024.
Indian general insurance Acko said on Thursday it had raised $ 255 million to fund growth plans in a Series D funding round that has helped the online insurer achieve “unicorn” status with a valuation of $ 1.1 billion.
Growth capital investor General Atlantic and Indian firm Multiples Private Equity led the fundraiser, Acko said, adding that the Canada Pension Plan Investment Board, venture capital firm Lightspeed and some existing investors had also participated in the round.
Auto insurance is Acko’s main revenue driver and the company also offers insurance for smartphones, laptops and other home electronics sold on the Indian website of Amazon, which is also an investor in the startup.
Acko, which also started offering business health insurance about a year ago, will use the new funds to double its health insurance, said company founder and CEO Varun Dua.
“We will have a direct-to-consumer health product that launches early next year,” Dua told Reuters in a telephone interview.
The funds will also be used to develop new insurance products, to bring them to customers, as well as to foster partnerships in the wider health economy, including with hospitals, Dua added.
The company could also offer life insurance products in the future, although there are no immediate plans, Dua said.
Acko will likely consider public listing in 2023 or 2024, Dua said.
Acko, founded in 2015, competes with players such as Policybazaar backed by SoftBank and ICICI Lombard in India’s crowded insurance industry.
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