Acko Wants To Repair Cars Now; Opens Two Service Centres

SUMMARY

Acko has two service centres in Bengaluru and plans to open 100 service centres in the next six months

The unicorn said that the entry in aftermarket space will give it the capability to direct accidental repair vehicles arriving for insurance claims to the service centres

Acko’s net loss jumped 53% YoY to INR 738.5 Cr in FY23, while operating revenue grew 32% to INR 1,758.6 Cr

Expanding its automotive play, insurtech unicorn Acko has forayed into the car repair and service space with the launch of ‘Acko Drive Service Centre’.

The startup has launched two such service centres in Bengaluru. It plans to open 100 service centres in Delhi, Mumbai, Pune, Hyderabad, Ahmedabad, and Chennai in the next six months.

Acko said that the personnel employed in these centres are well trained and will exclusively use original OEM spare parts to guarantee the longevity and reliability of the repairs.

“Our commitment to deliver an unparalleled retail experience, leveraging cutting-edge technology, and fostering deep industry partnerships, underscores our vision to become a one-stop shop for all things automobiles,” Acko’s vice president of strategic partnerships Saumitra Raj said.

Explaining the rationale behind the move, the startup said that the aftermarket service space is largely dominated by unorganised players and it is looking to cement its position as a holistic service provider in the space.

“By entering the aftermarket space, the company will attain the capability to seamlessly direct accidental repair vehicles arriving at Acko for insurance claims to Acko Drive Service Centres,” it added.

In this segment, Acko will compete with the likes of Cars24, Droom, and CarDekho.

Founded in 2016 by Varun Dua and Ruchi Deepak, Acko offers insurance for vehicles, health and travel. It counts the likes of General Atlantic, Multiples Private Equity, Lightspeed, and Intact Ventures among its investors. Last year, it also launched an insurance plan for batteries of electric vehicles (EVs).

Acko has raised a total funding of over $450 Mn till date and counts the likes of Amazon, General Atlantic, and Multiples Private Equity Fund among its backers. Its net loss jumped 53% year-on-year to INR 738.5 Cr in the financial year 2022-23 (FY23), while operating revenue grew 32% to INR 1,758.6 Cr.