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Acko Success Story and Business Model

Acko is India’s first agentless general insurance company. Acko is also the first digital insurer in India, that conducts all its operations exclusively on its digital platform. Acko was established by Varun Dua, who had previously founded the insurance aggregation platform Coverfox. Since its inception, Acko has garnered attention for its innovative business model and customer-centric approach. In this post, I will share details about Acko’s Success Story and Business Model.

Acko Success Story and Business Model

Acko Success Story and Business Model

Acko Founding

Established by Varun Dua in 2016, Acko’s goal was to tackle the inefficiencies and complexities commonly found in the insurance industry. Utilizing a finance background and e-commerce industry experience, Dua recognized major deficiencies in the insurance sector and visualized a contemporary, technology-focused remedy.  

Varun Dua, the Founder and CEO of Acko, brings more than 10 years of experience in the insurance industry, encompassing a diverse range of services and roles. His experience with Coverfox helped him a lot in establishing and growing Acko. 

Varun Dua finished his Bachelor’s degree at the University of Mumbai. Afterward, he continued his education by obtaining a master’s degree at a well-known business school in India known as MICA.

Early Struggles 

With the support of experienced investors, Acko started its mission to revolutionize the conventional insurance industry in India. Yet, there were obstacles in the early stages. Similar to all startups, Acko encountered challenges in building its reputation and gaining recognition in a competitive industry.

Acko Company Details

Founder and CEOVarun Dua, Ruchi Deepak
HeadquartersBangalore, Karnataka, India
Employees671 (2024)
Annual RevenueINR 1758 (2023)
Products & ServicesCar, Bike, Health, Travel Insurance Online

Business Model of Acko

Acko makes use of a direct-to-consumer business strategy. Traditionally, almost all insurance companies rely on agents to sell insurance policies. Whereas, Acko utilizes its online platform to directly sell insurance products, leading to better risk selection and underwriting. 

Acko sets itself apart by providing unique and user-friendly insurance options, such as rider insurance, mobile and appliance protection, ticket cancellation, and more, along with comprehensive coverage for cars and health.

Revenue Streams of Acko


Similar to all insurance companies, Acko earns a large portion of its income from premiums. Customers pay premiums for insurance policies in return for coverage against particular risks. Acko’s attractive pricing and easy-to-use interface appeal to a wide range of customers, resulting in high revenue.

Commission from Partnerships

Moreover, Acko generates income by collaborating with different organizations, such as online shopping platforms and companies that provide value-added services. These collaborations involve providing insurance products customized for the unique requirements of partner clients, with Acko earning commissions for policies sold via these avenues.

Investment Returns

Moreover, Acko allocates its funds across various investment portfolios to create additional returns alongside its primary sources of income. Although premiums are the main source of income, investment returns also contribute to Acko’s profitability, providing an extra layer of financial security.

Acko’s Success Factors

Digital-First Approach

Acko differentiates itself from traditional insurers through its emphasis on digital technology in its business model. Acko uses advanced technology to provide smooth and easy-to-use insurance options. Using its user-friendly platform, clients can effortlessly buy insurance plans, handle claims, and utilize customer support services, streamlining the entire procedure for convenience and effectiveness.

Technology Integration

Acko demonstrates its dedication to innovation by strategically incorporating technology into all areas of its operations. Acko utilizes cutting-edge technologies such as data analytics and artificial intelligence to improve customer experience, reduce risks, and streamline processes. Through the use of data-driven insights, Acko customizes its products to provide personalized solutions that cater to the specific requirements of individual customers.

Customer-centric Approach

One of the main reasons for Acko’s success is its unwavering commitment to ensuring customer satisfaction. By providing personalized services, clear communication, and easy claims processing, Acko has gained the confidence and dedication of its customer base.

Agility and Adaptability

In a quickly changing market environment, Acko has shown impressive flexibility and ability to adjust. Acko has remained competitive and successful by predicting market changes, keeping up with trends, and embracing change.

Strategic Partnerships

Acko has established strong alliances with top digital platforms, major e-commerce companies, and financial institutions in order to grow its audience and target new customer groups. These partnerships have not just strengthened Acko’s position in the market but also accelerated its growth direction.

Acko Funding

Acko has raised a total of $605 Millon in funding over 7 rounds. Acko’s latest funding was in April 2023. In the last round Acko raised $120 Million. As per sources, the first funding of Acko was done in March 2019 when the company raised $65 Million in a Series C round. 

Acko Innovative Offerings


Acko’s micro-insurance, a standout offering, targets the underprivileged sectors of society. Acko enables people and families to protect themselves from unexpected risks by offering insurance options that are both accessible and inexpensive. This all-encompassing strategy demonstrates Acko’s dedication to societal accountability and economic inclusivity.

Instant Claims Settlement

Acko focuses on efficiency in its claims settlement process by using technology to guarantee quick and easy resolution. By automating and digitizing processes, Acko simplifies the claims process, cutting down on turnaround time and improving customer satisfaction. This proactive strategy helps build trust and loyalty with customers, setting Acko apart from its rivals.

Challenges and Overcoming Them

Regulatory Hurdles

Just like any innovative startup, Acko encountered regulatory hurdles while working to revolutionize the insurance sector. Successfully navigating intricate regulatory frameworks demanded careful attention and strategic planning. However, Acko’s commitment to compliance and transparency enabled it to overcome regulatory hurdles and establish itself as a trusted player in the market.

Building Trust in a Digital Platform

Another obstacle Acko faced was establishing credibility on a digital platform, particularly in a field with a reputation for its conventional methods. It was essential to address issues surrounding data security, privacy, and reliability in order to earn the trust of customers. By implementing strong security measures and clear communication, Acko was able to build trust with its customers, leading to long-term growth.

Future Prospects

Expansion Plans

In the future, Acko will continue to prioritize growth and creativity in order to solidify its status as a top player in the market. The company is still researching different market segments and locations, looking for chances to expand and vary. Acko aims to lead the insurance industry’s future by being agile and adaptable.

Innovation and Adaptability

Acko’s strategy revolves around innovation, as it consistently aims to shake things up and bring new ideas to the insurance industry. Acko stays flexible and adapts to changing market dynamics by embracing new technologies and consumer trends. This dedication to innovation helps Acko remain pertinent and competitive in a swiftly evolving environment.

Learning from Acko Success

  • Digital Focus – Acko is first digital insurance company. Acko sell commission free, agent less insurance policy online. It is the prime reason why Acko is able to provide insurance at an affordable rates. Learning here is Digital businesses have very good future.
  • Focus on Innovation – Acko continuously introduces new ideas to remain at the forefront in the competitive insurance industry. Whether they are launching new insurance products or improving current services through cutting-edge technology, they continue to lead in innovation. This means your business should foucs on innovation for growth.
  • Digital Marketing – Acko effectively utilizes digital marketing channels to reach its target audience and build brand awareness. Their strategic use of online advertising, social media, and content marketing helps in expanding their customer base. This clearly means that business should focus on digital marketing for growth.
  • Partnerships and Collaborations – Acko works with different partners, such as online shopping websites and banks, to connect with a wider customer base and grow its distribution channels. These collaborations allow them to access new markets and enhance their market share. The learning here is it is important to do partnership and collaboration for business growth.
  • Focus on Efficiency – Acko focuses on efficiency in its processes, leading to cost reduction and increased profits. Utilizing technology and streamlining operations enables them to provide affordable prices without sacrificing profit margins. Learning here is one should focus on efficiency in the business. 


In conclusion, Acko’s success story demonstrates how innovation and disruption can significantly impact the insurance sector. By prioritizing digital platforms, incorporating technology, and focusing on customers, Acko has transformed the perception and experience of insurance. As the company grows its reach and services, it is well-positioned for continued success and expansion in the future.


How did Acko disrupt the insurance industry?

Acko disrupted the insurance industry by adopting a digital-first approach, leveraging technology to streamline processes, enhance customer experience, and offer innovative solutions.

What sets Acko apart from traditional insurers?

Acko distinguishes itself from traditional insurers through its user-friendly interface, customization options, and emphasis on technology integration. These factors contribute to a seamless and personalized insurance experience for customers.

How does Acko ensure instant claims settlement?

Acko ensures instant claims settlement through automation and digitalization of its claims process. By leveraging technology, the company expedites the verification and approval process, allowing customers to receive timely compensation for their claims.

What are some key challenges Acko faced in its journey?

Acko faced several challenges in its journey, including regulatory hurdles and building trust in a digital platform. Navigating complex regulatory frameworks and addressing concerns related to data security were among the primary challenges the company encountered.

What are Acko’s future prospects and expansion plans?

Acko remains focused on expansion and innovation, aiming to consolidate its position as a market leader. The company plans to explore new market segments and geographical regions while continuing to embrace emerging technologies and consumer trends.

Shitanshu Kapadia
Shitanshu Kapadia
Hi, I am Shitanshu founder of moneyexcel.com. I am engaged in blogging & Digital Marketing for 10 years. The purpose of this blog is to share my experience, knowledge and help people in managing money.