Making a move into the insurance sector, Amazon is close to closing a deal with online-only insurance startup Acko. In addition to being its distributor, Amazon is expected to co-create financial products with Acko.
Last year Acko Technologies, parent company of Acko General Insurance had received the in-principle regulatory clearance to launch. Amazon is likely to join Acko’s board as part of the new financing round of about Rs. 100 crore. This is in addition to the Rs. 200 crore of funding Acko managed to secure in May of 2017.
While there were no comments from either party confirming or denying the development, TOI has quoted a source with privy information saying, “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.”
When, and if, the deal is carried out it would mean that the Seattle-based e-commerce giant would start offering a slew of financial products on its platform here.
Flipkart, Amazon’s closest competitor in India, had also filed documents – a few months ago – with the Registrar of Companies looking to get the nod from Insurance Regulatory and Development Authority to be allowed to sell insurance products. This is indicative of the potential e-commerce players see in the segment.