Acko, an insurtech unicorn, has acquired OneCare, a digital chronic care management company, in an all-cash deal to expand its healthcare ecosystem.
OneCare's cofounders will join Acko's leadership team, bringing their expertise in omnichannel care models combining wearables, data insights, and virtual care.
The acquisition aligns with Acko's strategy to build a comprehensive healthcare ecosystem, occurring amid rapid growth in the Indian insurtech market, which is expected to reach $32.47 Bn by 2029.
Insurtech unicorn Acko
has bought digital chronic care management company OneCare as it looks to build a comprehensive healthcare ecosystem.
The deal was an all-cash transaction, although the company did not disclose the financial details of the acquisition.
Acko said the acquisition is a key component of its strategy to build a healthcare ecosystem to address various aspects of a customer’s health insurance needs, from protection to prevention, care and recovery.
As part of the deal, OneCare’s cofounders Rakesh Shivran and Sagar Bhat will be joining the leadership team of Acko.
“Integrating OneCare’s capabilities will help us weave cutting-edge clinical care directly into our customers’ insurance experiences, ensuring they receive the best possible care,” said Acko’s founder and CEO Varun Dua.
Founded in 2021, OneCare claims to have developed an omnichannel care model that combines wearables, data insights, physical clinics, and virtual care teams.
Acko, founded in 2016, offers insurance for vehicles, health, and travel. The company claims to have distributed insurance policies to over 78 Mn unique customers and issued more than 1 Bn policies to date. Recently, the company entered the car repair and service space by launching ‘Acko Drive Service Centre’.
Acko has raised over $450 Mn in total funding from investors, including Amazon, General Atlantic and Multiples Private Equity. In FY23, the startup reported a net loss of INR 738.5 Cr, up 53% year-on-year, while its operating revenue grew 32% to INR 1,758.6 Cr.
This comes at a time when the Indian insurtech market is gaining a lot of traction from the investors. The market size is expected to reach $8.63 Bn in 2024 and grow at a CAGR of 30.34% to $32.47 Bn by 2029.
Other major players in the market are also expanding their offerings. For instance, PolicyBazaar, valued at $3.5 Bn, has diversified into various insurance products. Another player, Digit Insurance, valued at $4 Bn, has expanded into health, motor, travel, and property insurance.
The insurtech sector in India is seeing increased adoption of digital technologies, AI, and automation. Key trends include data-driven product design, AI-powered underwriting, and enhanced fraud detection.
