Acko’s $120 million secondary; Udaan in talks for new funding

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Good day on this Wednesday! Acko is currently in the process of concluding a secondary share sale worth $100-120 million. Find out more about this and other news in today’s edition of the ETtech Morning Dispatch.

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Final touches are being put on Acko’s $120 million secondary share sale, with Enam, Mithun Sacheti, and Madhu Kela expected to join as participants.

Acko, the modern insurance company, is in the process of finalizing a secondary share sale worth $100-120 million. This deal involves some of its initial investors divesting their shares in the company, as shared by sources familiar with the matter. Stay tuned for more information on this exclusive transaction.

Acko’s early investor, Catamaran Ventures, is set to offload a significant portion of its 2.2% stake in the company. Enam group’s family office, Arpwood Capital, Mithun Sacheti – the founder of Caratlane, and seasoned public markets investor Madhu Kela are among the new investors stepping in. Additionally, General Atlantic, a prominent private equity firm and current shareholder, is poised to boost its stake from 20%, as per insider sources.

Provide further details: According to sources familiar with the matter, the transaction is set to take place with a reduction of 5-10% from Acko’s valuation of $1.4 billion from the previous year, which was assigned to the company when it secured new funding.

In a broader perspective, a considerable number of Indian startups that have reached significant operational scale or are on the path to going public are choosing to conduct secondary share sales. This approach helps in facilitating exits for initial investors and attracting investors well-versed in the dynamics of the financial markets. Acko now joins the ranks of Purplle, Meesho, OfBusiness, and Lenskart, all of whom have engaged in comparable deals.