Acko was built by Varun Dua as a digital-first insurance company focused on simplifying insurance through technology.
Discover how Acko founder Varun Dua transformed his insurance experience at Coverfox into a digital-first insurer, building Acko into a $1.1 billion insurtech unicorn.
Written by TFN Research Desk | covering startups, technology, venture capital, and business strategy
Quick Facts
| Founder | Varun Dua |
| Education | Bachelor’s, University of Mumbai; Master’s, MICA, Ahmedabad |
| Prior Ventures | Co-Founder, Coverfox (insurance aggregator); Founder, GlitterBug Technologies |
| Role | Founder and CEO, Acko |
| Founded | 2016 |
| Sector | InsurTech |
Introduction
Varun Dua had already spent years inside India’s insurance ecosystem, first building the aggregator platform Coverfox, before concluding that real disruption meant starting an insurance company from scratch rather than simply comparing existing ones. In 2016, he founded Acko alongside co-founder Ruchi Deepak, betting that a fully digital, zero-branch insurer could out-innovate legacy players. (The Progress Catalyst; StartupTalky) Today, Acko is one of India’s most prominent insurtech unicorns and is preparing for a public listing. (Entrackr)
The Acko Story
Before founding Acko, Dua built Coverfox in 2013, an online platform that let customers compare and buy insurance policies. (The Progress Catalyst) That experience convinced him the deeper opportunity lay in owning the insurance stack itself, not just the distribution layer, which led him and Deepak to identify two core problems in the industry: opaque processes and rigid, one-size-fits-all pricing. (StartupTalky)
Acko received its IRDAI licence in September 2017 and launched with a simple pitch: insurance made easy, with zero commission and zero paperwork. (Wikipedia; Arise Times) By eliminating agents and branches, the company kept operating costs low and passed the savings on through more competitive pricing, starting with motor insurance before expanding into health, travel, and other protection products. (Arise Times)
Acko’s direct-to-consumer approach was reinforced by an embedded-insurance strategy, partnering with platforms like Amazon, Ola, Swiggy, and Zomato to offer coverage at the point of purchase. (The Progress Catalyst) That distribution edge helped Acko become India’s 34th unicorn in October 2021, following a $255 million Series D round led by General Atlantic. (Inc42)
Business Model
Acko earns revenue primarily through insurance premiums, supplemented by embedded partnerships and investment income:
| Revenue Stream | How It Works |
|---|---|
| Gross premium earned | Acko’s largest income source, from motor, health, and travel policies |
| Embedded insurance | Revenue from partnerships with Amazon, Ola, Swiggy, and other platforms |
| Service contracts and commissions | Fees from ancillary services and reinsurance recoveries |
| Investment income | Returns on the company’s investment portfolio |
(Sourced from Entrackr)
Funding History
| Round | Year | Amount | Key Investors |
|---|---|---|---|
| Series A–C | 2017–2020 | ~$150 million (cumulative) | Accel, Elevation Capital, Ascent Capital, Amazon |
| Series D | Oct 2021 | $255 million | General Atlantic, Multiples Private Equity, CPPIB, Lightspeed |
| Private Equity | Jul 2025 | Undisclosed | Midas Deals (MS Dhoni’s family office), existing investors |
(Sourced from General Atlantic and The Head and Tale)
Overall, Acko has raised roughly $458 million to date, reaching a valuation of $1.1 billion after its 2021 Series D round, making it one of India’s earliest insurtech unicorns. (Inc42)
Revenue and Growth
| Metric | FY24 | FY25 |
|---|---|---|
| Operating Revenue | ₹2,106.3 crore | ₹2,836.8 crore (up 34.7%) |
| Net Loss | ₹669.9 crore | ₹424.4 crore (down 36.7%) |
(Sourced from Inc42)
Notably, Acko’s EBITDA margin improved sharply from -31% to -14% over the same period, and the company has continued this momentum into FY26, even as it trimmed roughly 5% of its workforce ahead of a planned IPO. (Entrackr)
Acko vs Competitors
Acko competes with Digit Insurance, Policybazaar, and InsuranceDekho in India’s digital insurance market, alongside established insurers like LIC. (Inc42) Compared to Digit, Acko has leaned more heavily on embedded insurance partnerships with consumer platforms, while both companies compete closely on motor and health insurance pricing.
Key Takeaways
- Varun Dua founded Acko in 2016 with co-founder Ruchi Deepak, after first building the insurance aggregator Coverfox.
- Acko became India’s 34th unicorn in 2021 following a $255 million Series D round led by General Atlantic.
- The company has raised roughly $458 million to date and is preparing for a public listing.
- FY25 revenue grew 34.7% to ₹2,836.8 crore, while net loss narrowed 36.7% to ₹424.4 crore.
- The company competes with Digit Insurance, Policybazaar, and InsuranceDekho in India’s insurtech space.
FAQs
Who founded Acko?
Varun Dua founded Acko in 2016, along with co-founder Ruchi Deepak.
Is Acko a public company?
Not yet, though it is preparing for an IPO as of 2026.
How much funding has Acko raised?
Roughly $458 million, reaching a $1.1 billion valuation in 2021.
Who are Acko’s competitors?
Digit Insurance, Policybazaar, and InsuranceDekho in India’s insurtech market.
© The Founder Nation | Written by TFN Research Desk
