American electronic commerce company Amazon is planning to invest in online-only insurance startup Acko. The deal will see Amazon co-create financial products with Acko – besides being its distributor. Flipkart too had held talks with the startup for a potential investment but those discussions fell through.
About Acko Technologies
Acko Technologies is the parent of Acko General Insurance, which received an in-principle regulatory clearance to launch earlier this year.
People aware of the transaction said the Amazon is likely to come on board Acko as part of a new financing round of about Rs 100 crore. This, after the company racked up Rs 200 crore in May this year.
Engaged with Amazon and Flipkart
They were engaged with both Amazon and Flipkart for the past few months for an investment. But with Amazon putting in a term sheet, the deal is likely to close soon with them, after which Amazon will start selling a slew of financial products on its site here.