IRDAI granted a licence to ACKO and Credit Access to commence life insurance business on March 25
The regulator approved a company for life insurance for the first time in 12 years, with the last licence going to Edelweiss in 2011
Reportedly, the insurtech unicorn is close to raising up to $150 Mn from existing investors
Bengaluru-based insurtech unicorn ACKO has become one of a select few life insurers in India, having been granted a licence by the Insurance Regulatory and Development Authority of India (IRDAI). The insurance regulator also approved the microfinance company Credit Access to start a life insurance business.
“In the 121st meeting of Insurance Regulatory and Development Authority of India held on 25th March 2023, two new entities namely Acko Life Insurance Ltd. and Credit Access Life Insurance Ltd. were granted the certificate of registration to commence life insurance business,” IRDAI said in an official statement.
This takes the number of life insurers in India to 25. Incidentally, the insurance regulator has approved a company for life insurance for the first time in 12 years, with the last licence going to Edelweiss in 2011.
“This comes after the grant of registration to a general insurer in the Authority’s 120th meeting held in November 2022; marking the addition of a total of three new insurers in the financial year 2022-23. Another 20 applications are in pipeline at various stages of registration in life, general and reinsurance segments,” the statement added.
ACKO, backed by the likes of Amazon, Accel, General Atlantic and Canada Pension Plan Investment Board (CPPIB), joined the unicorn club in 2021 when it raised $255 Mn. Reportedly, the insurtech unicorn is close to raising up to $150 Mn from existing investors.
Further, as per different reports, the startup is set to be valued at $1.5 Bn at the latest funding round. ET further reported that alongside General Atlantic and CPPIB, Lightspeed Venture Partners and Multiples Private Equity are also looking to participate in the fundraise.
Founded in 2016 by Varun Dua and Ruchi Deepak, ACKO is a digital insurance policy provider, competing with the likes of Digit and Plum.
The startup claims to have one of the largest market shares in embedded insurance products such as mobility and gadget insurance across large digital consumer platforms including Amazon, MakeMyTrip, Ola, Urban Company, Bajaj Finance and others.
The startup also covers nearly a million gig workers in the country through partnerships with companies including Zomato and Swiggy.
ACKO’s net loss increased 3X to INR 382.3 Cr in FY22 from INR 132.5 Cr in FY21. At the same time, its revenue jumped 2.29X to INR 1,087.5 Cr during the year from INR 475.3 Cr in FY21.