Prosus is said to be leading a new funding round with more than $200 million U.S. earmarked for Acko, an India-based online insurance company.
Acko, whose high growth and central area of insurance, automobiles, has caught the eye of the major tech investor, is in the final stages of talks to expand with existing and new investors.
Launched in 2016, Acko sells insurance directly to consumers with no middleman, helping consumers save money. It was the first digital insurer in India and has laid claim to be the fastest-growing insurance company in the country. It says it has sold to more than 70 million customers.
Major existing corporate investors include the likes of Amazon, Accel Partners, Catamaran Ventures, Elevation Capital, RPS Ventures, and Binny Bansal. The new round of funding will value the firm between $2.0 and $2.3 billion U.S.
Acko faces intense direct competition from Digit Insurance, which was launched a year after Acko in 2017. It is the largest online insurer in India, valued at $4.0 billion U.S.
Naspers, which holds all its internet investments through Prosus, invested in two insurance companies in South Africa in the second half of 2021. Ctrl Technologies connects consumers, brokers, and insurers, while Naked provides complete insurance offerings. Prosus is therefore no stranger to investments in insurance.
This Prosus investment will create great synergies between digital insurance services and marketplaces, especially in autos.