Amazon is in final stages of choosing an investment in online-only insurance startup, people familiar with the matter said.The deal will see amazon co-create financial products with Acko-besides being its distributor in the first such move by the web retailer. Sources said Flip kart too had held talks with the startup for a potential investment but those discussions fell through.
Nanotechnologies is the parent of acko general insurance, which received an in-principal regulatory clearance to launch earlier this year. People in the know of the transaction said the settle based e-tailing major is likely to come on board Acko as part of the new financing round of about Rs 100 crore.This, after the company, racked up Rs 200 crore in May this year.
“They were engaged with both Amazon and Flip kart 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,” a source privy to the talks said.
The Mumbai used Acko is backed by the likes of NR Narayan Murthy’s Catamaran ventures, Infosys co-founder Kris Gopalakrishnan, Hemendra Kothari of DSP Black-rock, and venture funds Accel partners and Safe partners.It is so-called insurance startup that spun off this year from Co-firefox, an online insurance marketplace.
When asked about its investment in Acko, an Amazon spokesperson said, the company does not comment on speculative reports on what we may or may not do in future. Acko CEO Varuna did not comment on the development.
A few months back, amazon’s closest competitor Flipkart had filed documents with the register of companies, seeking approval from the insurance regulator to become a marketplace for selling insurance products. Only 3% of insurance is bought online currently in India out of an overall $80-billion market, But that share is likely to grow significantly.