In the view of escalating insecurities and rising fraud rate in India, insurance has become an utmost priority for every individual. Be it a car, bike, or for that matter life insurance, it is no less than a lifesaver for people, especially for a middle-class man. However, not all the insurance service providers are satisfied with zero commission. To eliminate such loopholes in the industry, Varun Dua and Ruchi Deepak, founders of Acko, launched an online platform to make insurance claims a stress-free experience.
Let’s delve deeper into the journey of Acko and understand how this company reached the pinnacle of success.
How did it begin?
The founders of Acko, Varun Dua and Ruchi Deepak, were close friends way before they launched the Insurtech company. While Varun graduated from Mumbai University and worked closely in the insurance sector before launching his own venture, Ruchi was Delhi University alumnus who possessed years of experience in the consultancy sector. The duo came together during their employment tenure at Coverfox, which was launched by Varun Dua in 2013.
Though Coverfox became successful, Dua was not satisfied with the end result provided to the users. He wanted to build a platform that could eliminate the problems faced by the customers while procuring insurances. Eventually, he saw an opportunity to tap into the digital market and he made the most of it. With the help of his partner Ruchi, Varun laid the foundation of India’s first digital insurance service in 2016.
Success Mantra of Acko
Ever since its launch in the market, Acko has clocked over 62 million users on its platform. The success mantra of Acko lies in its business model. The Bengaluru-based startup used a direct-to-consumer approach to reach out to the young minds and streamlined the distribution of insurance through an online platform.
In 2019, Acko evaluated a premium worth of Rs 41.56 crore. Notably, it was a 6x growth compared to 2018 which was Rs 6.53 crore. In 2020, the brand established itself as one of the biggest insurance service providers in India and even collaborated with Amazon to offer mobile insurance plans on the website of the seller.
The company raised $255 million in a funding round in 2021 which further led Acko to join the much-envied unicorn club with a valuation of $1.1 billion, as of October 28, 2021. Moreover, Acko’s website attracts over 4 million visitors every month and has seen an increase in traffic in recent years, which rose by 161% from April to June of FY22 compared to the same period in FY21. In addition to this, the company serves over 70 million customers.