Multiples PE-backed insurer Acko acquires OneCare

Multiples Private Equity-backed Acko General Insurance has acquired digital chronic care management company OneCare as it focusses on becoming a healthcare service provider.

The deal was an all-cash transaction, though the firms did not disclose the financial deals. OneCare provides advanced wearables, data-driven insights, and follows an omnichannel approach with both physical clinics and virtual care teams, the firms said.

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.

Also read | Acko versus Acko: Insurer cries trademark violation in China, moves Indian govt

Dr. Rakesh Shivran and Sagar Bhat, co-founders of OneCare, 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,” Varun Dua, founder and chief executive of Acko, said.

Diversifying ambitions

Acko, which began in 2016 with vehicle insurance, has steadily expanded to also offer general and life covers.

The company has been looking at several diversification options. Recently, Acko entered the car servicing and repair space with Acko Drive Repair Centre, seeking to capitalise on the growing demand for branded car repair and maintenance services.

Servicing in-use vehicles presents a viable opportunity for tech-based firms as the sector remains largely fragmented and unorganised.

Also read | Revolutionizing health insurance: The potential of claims exchange and ABHA ID

Acko’s revenue from operations grew 32% to ₹1,759 crore in 2022-23, but its losses surged to ₹738 crore weighed by rising expenses.

Acko has secured nearly $450 million in funding from investors including Accel, Elevation Capital, and General Atlantic. It was last valued at $1.1 billion in October 2021.

Also read | Insurance reforms: Indians not required, and other tweaks to lure foreign money