Acko Insurance IPO Plans with Major Financial Firms
Digital insurtech firm Acko has appointed ICICI Securities, Morgan Stanley, and Kotak Securities as the leading book-running managers for its forthcoming initial public offering. This information comes from sources who are knowledgeable about the situation.
Based in Bengaluru, Acko is anticipated to submit its draft red herring prospectus (DRHP) to the Securities and Exchange Board of India (SEBI) in the near future. Reports indicate that the public issue will likely consist of a combination of new shares as well as an offer for sale (OFS) from existing investors. The sources, who chose to remain anonymous, mentioned that discussions surrounding the IPO are confidential.
The valuation of the IPO is projected to fall between $2 billion to $2.5 billion. Acko has opted not to provide comments regarding this development.
Founded in 2016 by Varun Dua and Ruchi Deepak, Acko is a technology-driven insurance and financial services provider focused on a customer-oriented model. The company presents a range of products, including motor, health, and travel insurance, as well as group health coverage for businesses. Recognised as one of India’s first fully digital insurers, Acko has gained popularity for its no-commission approach, streamlined processes, and rapid claims resolution.
To date, the firm has successfully raised over $583 million from various investors such as General Atlantic, Multiples PE, Accel, Elevation Capital, and the Canada Pension Plan Investment Board.
On the financial side, Acko’s revenue from operations climbed to Rs 2,837 crore in FY25, an increase from Rs 2,106 crore in FY24. Additionally, the company managed to cut its losses by 37% to Rs 424 crore.
Recently, Acko reduced its workforce by approximately 5%, affecting nearly 60 employees. This measure is part of an internal restructuring effort linked to the incorporation of artificial intelligence into its operations.
As Acko prepares for its listing on Indian stock exchanges, it will align itself with other industry players such as PolicyBazaar, which went public in November 2021, and Digit Insurance, which made its debut in May 2024. In a related development, insurtech company Turtlemint has also updated its DRHP in January this year for its own IPO.