Acko, India’s fastest-growing InsurTech company which specialises in auto insurance, announced that it has invested $1.2 million in Pitstop, a Bengaluru-based car service and repair platform. Acko’s investment is in line with the company’s strategy to improve customer engagement and smoothen the claim settlement process.
As per ETtech report, Acko cofounder Ruchi Deepak said that the strategic investment is first in line of other planned tie ups, as the four-year- old company attempts to create a full stack online car ownership platform.
“We are attempting to capture two important pillars of the car ownership ecosystem – the first-hand car market and auto insurance,” said Deepak. “The tie up with Pitstop will help us strengthen our claims process, while also enabling us to offer maintenance services to the AckoDrive customers.”
AckoDrive is the Narayan Murthy-backed insurers’ online car distribution business which was launched last year. Deepak said the investment in Pitstop will accelerate Acko’s claim servicing capability and its ability to offer repair and delivery services.
Founded in 2015, Pitstop is an online platform delivering one stop solution for all car care needs with operations in nine cities across the country. With the tie up with Acko, Pitstop will start providing repair and maintenance services for Acko customers in Bengaluru, Mumbai, Delhi and Pune, with plans to scale to over 20 cities.
“Having Acko as our strategic investor and partner will help us scale operations and allow us to unlock opportunities in the car repair and service market by aligning our resources,” said Mihir Mohan, founder Pitstop.
Deepak also said that the company has been seeing increased traction for insurance over the last two months as sales have picked up. However, its other portfolios, such as travel and microinsurance tie ups with ride-hailing platforms, have remained subdued since the coronavirus outbreak.
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