Amazon invests in Acko
Amazon (AMZN) recently invested ~$12 million in Indian-based (INDA) online insurance startup Acko General Insurance, a subsidiary of Acko Technologies. In funding Acko, Amazon has joined Catamaran Ventures, the existing investor in Acko, and Ashish Dhawan, the founder of ChrysCapital.
Acko General Insurance has $42 million worth of funding to date with the help of Amazon’s recent investment.
Amazon to expand in Indian insurance market
Founded in late 2016, Acko covers general insurance products, such as automobile and smartphone insurance, on its online platform. Acko also has partnerships with Uber and Ola Cabs. In fact, Acko has covered more than 10 million Ola trips so far.
Therefore, Amazon is looking to partner with Acko to bring insurance products to its e-commerce platform for Indian customers. The deal should help the online retailer to expand its presence in the $10 billion insurance industry in India.
Amazon’s e-commerce platform has been a big success in India and is expected to continue to boost its top line growth. In India, Amazon has invested in quite a few startups, including home services company Housejoy, financial comparison service BankBazaar, and gift card startup Qwikcilver. It also acquired payment platform Emvantage in 2016.
According to TechCrunch, Amazon hasn’t placed any restrictions on Acko despite the fierce e-commerce battle going on in India. Acko can therefore freely compete with companies such as Flipkart, which recently sold a 77% stake to Walmart (WMT).