Insurtech startup Acko buys Bengaluru-based healthtech startup OneCare

Bengaluru-based insurtech startup Acko has acquired digital chronic care management firm OneCare. The terms of the all-cash transaction remain undisclosed.

The acquisition is part of Acko's strategy to expand its services within the healthcare sector. It aims to provide an ecosystem that addresses a wide range of health insurance needs, from protection to prevention, care, and recovery.

Expanding healthcare services

Acko, which ventured into the retail health insurance market in March 2023, sees this acquisition as a crucial step in redefining healthcare for its customers.

"We're constantly redefining the healthcare landscape for our customers at Acko. We have acquired OneCare whose core business values emphasize a customer-first approach and comprehensive care, sharing our common goals to alleviate customer pain points," said Varun Dua, Founder and CEO of Acko.

He believes that integrating OneCare’s capabilities would enhance clinical care directly within Acko's insurance experiences, ensuring customers receive optimal care.

OneCare founders to join Acko's leadership team

Rakesh Shivran and Sagar Bhat, co-founders of Bengaluru-based OneCare, will join Acko's leadership team. They bring substantial experience and a proven track record in building large-scale health-tech services.

OneCare has built an omnichannel model of chronic care delivery utilizing advanced wearables, data-driven insights, physical clinics, and virtual care teams.

"Acko's vision aligns perfectly with our goals. We see a tremendous opportunity to scale our impact and transform the way care gets delivered to millions across the country," they said.

What does Acko do?

Founded in 2016 by Varun Dua, Acko operates on a direct-to-consumer model, offering paperless insurance products. The startup initially focused on auto insurance and has recently expanded into health insurance.

It is also known for launching unique products like the Extended Battery Warranty for EVs in partnership with Ather and Hero.

Acko has partnered with over 50 platforms, including Oyo, redBus, and Zomato, and claims to have insured over 78 million unique customers, distributing over 1 billion insurance policies.

Is Acko profitable?

Acko’s financial performance has seen a rise in revenue from operations by 31.9% to Rs 1,759 crore in FY23 from Rs 1,334 crore in FY22.

However, the startup also reported a 53.1% increase in losses, amounting to Rs 738 crore.

The acquisition of OneCare is expected to bolster Acko's healthcare offerings and potentially improve its financial outlook by integrating comprehensive health solutions that appeal to a broader customer base.