Global ecommerce player Amazon may probably close a funding deal with online insurance startup Acko. Amazon is in the final phase of discussion with Acko representatives.
If the deal goes through, Amazon will be the distributor of Acko apart from co-creating products for the insurance startup.
Earlier, Flipkart too had held talks with Acko for a collaboration. However, it didn’t work out.
Amazon is likely to participate in the latest funding round at Acko, which amounts to ₹100 crore. The might also give some stock options for Amazon.
“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,” said a close associate of the deal.
The Mumbai-based Acko is backed by ace investors like Infosys co-founders Kris Gopalakrishnan and NR Narayana Murthy.
Now the deal with Amazon will catalyze the company’s growth across India as more people would are likely to subscribe to online financial services.
This deal is part of Amazon’s strategy to expand its customer base in India. The deal also provides Amazon with an opportunity to sell financial products in the domestic market.