Acko Technology, which runs insurance portal Acko General Insurance, has filed a complaint with the Bengaluru police against two former employees, alleging that they stole confidential company information and used that to set up a competing business.
Acting on the complaint, the Bengaluru Cyber Crime Police Station filed a First Information Report on May 8 under Section 66 and 72 of the Information Technology Act, and Sections 403, 406, 408, 426, 120B and 34 of the Indian Penal Code. ET has reviewed a copy of the FIR.
The Amazon-backed company alleged that one of the accused, who held the position of Vice President, downloaded confidential information during his notice period in February and erased the operating system on his office laptop to hide the activity.
“The above-mentioned illegal acts…have resulted in causing damages to Acko Group to a tune of over Rs 20 crore,” according to Acko’s submission to the police, which has been incorporated into the FIR.
Onsurity, the company founded by the two former Acko employees, raised Rs 17.5 crore in seed funding from Nexus Venture Partners on March 20. The company was incorporated in February this year and is a direct competitor of Acko’s.
Acko and Nexus Venture Partners did not respond to ET’s requests for comment till press time Tuesday.
“We are shocked by the information that a FIR has been registered against us, and certainly have no reason to believe that we have indulged in any action that can be remotely construed as being in violation of the law,” one of the former Acko employees accused in the case said in a statement to ET.
The motive behind the complaint was to “defame, intimidate and harass” them, he said, adding that both he as well as his partner would cooperate with the police investigation.
Onsurity operates in the insure-tech space and offers solutions for mobile screen damage protection and a wellness program for enterprises, according to a job listing on popular startup jobs portal AngelList.
Acko, founded by Varun Dua, counts Flipkart founder Binny Bansal, Ascent Capital, RPS Ventures, Accel, SAIF Partners, Infosys founders Narayana Murthy and Kris Gopalakrishnan, among others as investors.
Modelled on the likes of Geico and Progressive in the US and China’s Alibaba and Tencent-backed Zhong An, Acko operates in two verticals — car and bike insurance — which it sells directly to consumers.
It also co-creates products and solutions which cater to new economy and internet companies. These include gadget protection for Amazon, ride insurance on Ola and its drivers, and partnerships with Zomato and the gig economy workforce.