Acko, a prominent insurtech unicorn, has ventured into the automotive industry with the launch of the ‘Acko Drive Service Centre’, marking its entry into the car repair and service market. The company has inaugurated two service centres in Bengaluru and has ambitious plans to establish an additional 100 centres in major cities such as Delhi, Mumbai, Pune, Hyderabad, Ahmedabad, and Chennai within the next six months.
The Acko Drive Service Centres have been meticulously designed to provide an exceptional customer experience, with a team of highly trained personnel exclusively utilizing original equipment manufacturer (OEM) spare parts. This steadfast commitment to quality repairs underscores Acko’s dedication to delivering superior service in the aftermarket space.
Saumitra Raj, Acko’s vice president of strategic partnerships, has emphasised the company’s dedication to advancing retail experiences through cutting-edge technology and strong industry partnerships, with the overarching goal of positioning Acko as a one-stop destination for all automotive needs.
Acko’s strategic foray into the aftermarket service sector is in response to the significant gap in the predominantly unorganised sector, with the company seeking to strengthen its position as a comprehensive service provider, offering seamless repair services for vehicles involved in insurance claims.
Despite facing competition from established players like Cars24, Droom, and CarDekho in the aftermarket service segment, Acko’s integrated approach, leveraging its existing customer base and operational expertise in insurance services, positions it well to bolster its market presence in automotive care.
Since its inception in 2016 by Varun Dua and Ruchi Deepak, Acko has garnered substantial investor support from industry heavyweights such as General Atlantic, Multiples Private Equity, Lightspeed, and Intact Ventures. With total funding exceeding $450 million, Acko continues to innovate, recently unveiling insurance products tailored for electric vehicle (EV) batteries.
Although reporting a 53% year-on-year increase in net losses to INR 738.5 crore in FY23, Acko has also observed a 32% growth in operating revenue to INR 1,758.6 crore. This financial performance underscores Acko’s resilience and strategic positioning amidst evolving market dynamics in the insurance and automotive sectors.
Looking ahead, Acko is well-placed to capitalise on its expanded service offerings and robust growth trajectory. The company’s expansion into automotive services aligns with broader industry trends towards integrated customer solutions, demonstrating its commitment to enhancing customer satisfaction through innovative service delivery models.