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Indian insurtech Aco is in late talks to raise $120 million in funding as weak global market conditions win major financing talks in the South Asian market.
General Atlantic is in talks to lead a $120 million round to Aco, the first tranche of which is $100 million, a source familiar with the matter said. The round values the Indian startup at $1.5 billion, said the source, who asked not to be identified because the matter is private. The round could close within weeks, but there is still a chance the terms of the deal could change slightly, the source said.
ACO, which became a unicorn in October 2021, has been in the market to raise new capital for at least eight months, people familiar with the matter said. TechCrunch previously reported that General Atlantic was in talks with Acco to increase its stake in the insurance company.
The New York-headquartered growth equity investor — which has backed several Indian companies over the past decade, including Jio, Bildesk, Baijus, PhonePe, Amagi, Nobroker and Unadami — plans to deploy at least $2 billion to $3 billion in India. According to people familiar with the matter, from five to seven years.
Acco and General Atlantic declined to comment.
Aco — which counts Amazon, Lightspeed Venture Partners India and CPPIB as existing backers — is among the few startups trying to take on the country’s age-old insurance industry with a digital-first product.
It develops and sells bite-sized auto insurance products (targeted at drivers and other transportation-related conditions), health care coverage for employers, as well as gadget protection.
The startup has distribution partnerships with several firms including Amazon, travel and hotel booking platform MakeMyTrip, ride-hailing Ola, insurance giant Bajaj Finance, City Company and fintech CRED.
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