Varun was born in 1981 in Delhi and spent his early years recognising something many of us feel but seldom pause to question: why is insurance so complex? He studied at the University of Mumbai and then at MICA (Mudra Institute of Communications, Ahmedabad) — a background that gave him both an understanding of marketing/consumer behaviour and an exposure to the business ecosystem.
His first jobs were in advertising with Leo Burnett, then in marketing roles at Tata AIG Life and Franklin Templeton—these weren’t startups; they were mainstream businesses. He observed how the legacy systems functioned: slow claims, lots of paperwork, agents in between, and poor clarity.
This early experience planted two key things:
(a) The insurance sector was ripe for disruption, and (b) he’d rather build something than just work in it.
In 2016, Varun launched Acko —a digital-first insurance company whose promise was simple: “Insurance made easy. Zero commission. Zero paperwork.”
The company got its official licence from the Insurance Regulatory and Development Authority of India (IRDAI) in September 2017.
From the start, Acko targeted categories where traditional insurers were weak: auto (especially in-trip coverage with partners like Ola), gadgets, travel etc.
This journey was far from smooth. Some of the key struggles:
Legacy mindset : Insurance in India had agents, paperwork, and slow claims. Convincing partners, regulators, and investors that a paperless model could work took time.
Building trust : Customers often don’t trust “new insurers.” Breaking that belief required clear product design, claims fulfilment, and visible transparency.
Distribution challenge : Even with tech, getting scale meant partnerships and embedding insurance into other consumer journeys, not just “come to our website.” Acko is embedded via marketplaces, apps, and mobility platforms.
Regulation & capital intensity : Insurance is regulated and capital-heavy. The margin of error is small. Mistakes in underwriting and claims can hurt deeply.
Unit economics : Many insurtechs look sexy, but the core business still requires strong underwriting, claims control, and data analytics. Acko had to prove it.
Rejections & investor scepticism : Before Acko’s launch, getting serious investor backing meant proving both the tech model and the market viability. One note: investors invested ~$30m early into Acko even before formal operations, based on Varun’s track record.
What did Varun and Acko do differently? Some highlights:
Zero-agent, zero-paperwork model : End-to-end digital. From purchase to claim. That removes cost and creates speed.
Embedded insurance : Rather than “go buy insurance”, Acko embedded into mobility (rides, car rentals), e-commerce (gadgets), travel etc. This means customer doesn’t experience insurance as a separate friction-point.
Usage-based pricing : Particularly in motor insurance. Pay for what you use, drive less? That kind of logic. The tech layer helps.
Strong brand positioning : Acko used marketing messaging that said “full paisa wasool”, “paperless”, “instant”, contrasting old‐school insurance. That helps attract younger consumers.
Data & automation focus : Instead of relying purely on legacy risk models, they built analytics, automated claims, partner with tech platforms to get consumer/behaviour data.
Acko became one of India’s insurtech unicorns. For instance, reports say the company had raised over $450m to date.
This shows that the model is scaling, the unit economics are improving, and the trust in digital-insurance as a mainstream proposition is growing.
From Varun’s journey there are plenty of lessons, especially for startup founders in India:
Start with a real pain-point : Varun didn’t build insurance because it was sexy; he built it because he’d seen first-hand how bad the experience was. Your startup should start with “does this problem hurt?”
Leverage existing experience then leap : Before Acko, he had Coverfox and earlier roles. That gave domain insight and investor credibility. For founders: build on what you know before you leap.
Think end-to-end disruption : Aggregator → just comparison; insurer → entire product. If you want to disrupt, you may need to own more of the value chain.
Use tech + data to improve core economics : Growth is important, but so is efficiency. Acko’s narrowing of losses shows that.
Embed rather than interrupt : Embedded models (insurance inside mobility/commerce) reduce friction. For start-ups: think where your offering fits in existing flows.
Brand & consumer trust matter : Insurance is trust-heavy. Founders in any sector must remember consumers trust them with time, money, privacy. Build brand early.
Investor mindshare comes from credibility + clarity : Varun got early backing because he had track record + a clear model. For first-time founders: demonstrate domain understanding, unit economics and growth path.
Don’t run away from regulation or legacy barriers : In sectors like finance, health, infra, you’ll have incumbents and rules. The smart move: embrace them and build your advantage around them.
Stay unit attentive even when scaling : Big markets tempt you to scale fast. But if you scale with bad economics, you’re doomed. Acko’s expense control (e.g., employee cost, ad spend) shows discipline. Entrackr +1
Be patient but relentless : It took years before Acko became truly large. Many founders expect hyper-growth within a year — but deep disruption takes time, especially in regulated, customer-trust sectors.
What’s next for Acko (and by extension for Varun)?
Scaling further across new insurance lines (health, life, cyber etc) and new countries or geographies.
Improving profitability and moving from “growth at cost” to “growth plus profit”. The FY25 numbers show improvement but full profit is still the mission.
Going public (IPO) is likely on the agenda. For any founder building big, planning for the public market discipline early helps.
Building a brand that is “India native but globally relevant” — given the size of Bharat, this is a big advantage.
Leveraging the D2C + embedded model to reach Bharat (tier-2/tier-3) states, digital natives + mass consumers, which you (as a founder with Bharat focus) are very aligned with.
Varun Dua’s story with Acko reminds us that even the most “boring” sectors (like insurance) hold massive opportunities — provided you approach them with fresh eyes, tech-driven tools, and a genuine consumer mindset. For Indian founders aiming to build something meaningful, his journey offers both a roadmap and a reminder: start with a problem, build a solution end-to-end, scale with discipline, and always keep the consumer’s trust at the core.
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