Acko, India’s first fully digital insurance platform, is reshaping how Indians experience insurance. Founded in 2016 by Varun Dua and Ruchi Deepak, Acko offers a frictionless, paperless, and commission-free way to insure vehicles, health, life, and more. With a mission to make insurance ‘easy, fast, and stress-free,’ Acko has grown into a $1.4 billion insurtech giant trusted by millions. Its tech-first model has revolutionized the industry, making insurance more accessible, affordable, and user-friendly than ever before.
The Founders Behind Acko
Varun Dua, a seasoned entrepreneur, previously founded Coverfox Insurance. With experience at TATA AIG Life Insurance and Franklin Templeton Investments, he understood the challenges in India’s insurance sector deeply. His advertising background at Leo Burnett helped him communicate complex financial ideas in a simple way. Ruchi Deepak, co-founder and serial entrepreneur, brought business acumen from her ventures like Airloom and her role at Pitstop. Together, they envisioned a digital platform that would cut the clutter from traditional insurance and put customer experience first.
The Spark: Why Acko Was Founded
The Indian insurance industry was long burdened with tedious paperwork, hidden commissions, and complex jargon. Recognizing the need for simplicity, Varun and Ruchi launched Acko with the motto: “Insurance made easy: Zero Commission. Zero Paperwork.” Their idea was to offer affordable policies online, directly to consumers (D2C), without agents or intermediaries. The result was a transparent and efficient process that appealed to India's growing digital-first population.
Products That Cater to Every Lifestyle
Acko’s product lineup spans every major insurance need:
- Car Insurance: Covers damages, thefts, and third-party liabilities.
- Bike Insurance: For two-wheeler safety and accident protection.
- Health Insurance: Affordable premium plans with cashless hospitalization.
- Life Insurance: Term and flexible life plans through Life Flexi Term Plan.
- Travel Insurance: Covers delays, cancellations, and lost luggage for domestic and international travel. Acko also offers custom protection for appliances, mobiles, ticket cancellations, and even ride insurance on platforms like Ola and Amazon.
Business Model: Direct and Data-Driven
Acko operates through a Direct-to-Consumer (D2C) model. Customers can purchase policies via Acko’s website or app without needing brokers or agents. This allows for better pricing and personalized insurance recommendations. Their revenue model includes:
- Premiums: From retail and enterprise customers.
- Partnered Commissions: Through tie-ups with eCommerce and mobility brands.
- Data Monetization: Using behavioral insights (without violating privacy) for product innovation, cross-selling, and targeted campaigns.
Rapid Growth and Financials
In FY24, Acko reported revenue of Rs 2,106 crore, up from Rs 1,758 crore in FY23. While losses stood at Rs 670 crore, the company is steadily moving toward profitability by refining operations and leveraging automation. It serves over 70 million customers, processing millions of policies and claims digitally. Acko has processed claims for everything from car dents to flight delays—all via smartphone within minutes.
Key Funding Milestones
Acko has raised a total of $458 million through several notable rounds:
- 2023: PE round with General Atlantic
- 2021: $255M in Series D, led by General Atlantic & Multiples PE
- 2020: $60M from Munich Re Ventures
- 2019: $36M from Ascent Capital, Binny Bansal (Flipkart)
- 2018: $12M from Amazon in Series B
- 2017: $30M seed funding from Kris Gopalakrishnan and Narayana Murthy This backing highlights investor confidence in Acko’s innovative model and long-term potential.
Strategic Partnerships
Acko has formed alliances with top brands to expand reach:
- Amazon: Offers mobile protection plans at checkout.
- Ola: In-ride insurance for passengers.
- RedBus, Zomato, and Swiggy: Micro-insurance during travel or transactions. Such partnerships have made Acko’s services accessible to millions of users without them ever needing to leave their app ecosystem.
Awards and Achievements
Acko has received numerous accolades:
- Golden Peacock Award for Innovation (2019)
- FICCI Insurance Industry Excellence Award (2020)
- BW Fintech Award (2021) It also launched the ACKO Drive Awards, celebrating innovation in the Indian automotive sector.
Life Flexi Term Plan: A Standout Innovation
Acko’s Life Flexi Term Plan gives users customizable options like term length, payout style, and premium frequency. This plan has been widely appreciated for bringing transparency and choice to life insurance—an area often avoided due to complexity.
The Road Ahead: Future Plans
Acko aims to deepen its presence in Tier-2 and Tier-3 cities through vernacular support and simplified onboarding. It also plans to:
- Launch AI-powered claim verification
- Integrate more wellness programs with health policies
- Expand its reinsurance capabilities
- Go IPO-ready by 2026, focusing on sustainable profitability With India’s insurance market expected to reach $280 billion by 2025, Acko is well-positioned to ride this wave.
Wrapping Up
Acko’s journey from a startup to a digital insurance leader is proof that even the most traditional industries can be disrupted with bold ideas and customer-first thinking. With a strong team, tech-driven model, and wide product range, Acko continues to lead the transformation of India’s insurance ecosystem—making it more accessible, digital, and trustworthy.
Frequently Asked Questions (FAQs)
Q1. What is Acko?
Acko is India’s first digital-only insurance company offering car, bike, health, life, and travel insurance via its online platform.
Q2. Who are the founders of Acko?
Acko was founded by Varun Dua and Ruchi Deepak in 2016 to simplify the insurance process through a direct-to-consumer model.
Q3. How can I buy Acko insurance?
You can buy insurance directly from the Acko website or mobile app without any agents or paperwork.
Q4. Is Acko’s claim process easy?
Yes, Acko provides a hassle-free digital claim process, with many claims settled in under 2 days and a settlement ratio of 94.5%.
Q5. What is Acko’s revenue and valuation?
In FY24, Acko reported Rs 2,106 crore in revenue and holds a valuation of $1.4 billion, backed by top investors like Amazon and General Atlantic.