Insurtech firm Acko, which specializes in auto insurance, has invested $1.2 million in car service and repair platform Pitstop, as part of its strategy to improve customer engagement and smoothen the claim settlement process.
Acko cofounder Ruchi Deepak told sources, that the strategic investment is first in a line of other planned tie-ups, as the four-year-old company attempts to create a full-stack online car ownership platform.
“We are attempting to capture two important pillars of the car ownership ecosystem – the first-hand car market and auto insurance,” said Deepak. “The tie-up with Pitstop will help us strengthen our claims process, while also enabling us to offer maintenance services to the AckoDrive customers.”
“Having Acko as our strategic investor and partner will help us scale operations and allow us to unlock opportunities in the car repair and service market by aligning our resources,” said Mihir Mohan, founder Pitstop.
Deepak also said that the company has been seeing increased traction for insurance over the last two months as sales have picked up. However, its other portfolios, such as travel and microinsurance tie-ups with ride-hailing platforms, have remained subdued since the coronavirus outbreak.
Acko, which is also foraying into health insurance, has seen increased demand for medical cover. As per the latest data from insurance regulator IRDAI, Acko has underwritten premiums worth Rs 110 crore in FY21 up to August, which is 10% lower from the year-ago period.