Acko Restructures Workforce to Enhance AI Integration

Digital insurtech firm Acko has made the decision to reduce its workforce by 5%, affecting nearly 60 employees, due to an internal restructuring related to integrating artificial intelligence, as reported by Mint. The employees who have been affected are anticipated to remain with the organisation until the end of June. A spokesperson from Acko has confirmed this update to Startup Superb.

Strategic Shift Towards AI-led Workflows

The adjustments in Acko’s workforce are part of a larger initiative to reorganise teams, focusing more intensely on AI-driven workflows, performance metrics, and new skill sets suited to its next growth phase. This shift is not merely a cost-cutting measure but rather a strategic realignment for future success.

Leadership Changes Amidst Workforce Reduction

This reduction in staff coincides with the exit of the chief marketing officer, Ashish Mishra, who is currently serving his notice period after nearly five and a half years with Acko. He is expected to be succeeded by Nitin Khanna, an internal leader who has over seven years of experience with the company.

Acko, which employed approximately 1,200 individuals as of March 2026, is witnessing the redundancy of certain roles due to this transition. This marks Acko’s second round of layoffs, following previous job reductions during the Covid-19 pandemic.

Preparing for an IPO

This development arrives as Acko gets ready for a proposed IPO, targeting $300–400 million in FY27. Established in 2016 by Varun Dua and Ruchi Deepak, the company has successfully raised more than $458 million to date, according to various sources.

Acko’s operational revenue has climbed to Rs 2,837 crore in FY25, up from Rs 2,106 crore in FY24, while losses have decreased by 37% to Rs 424 crore. In comparison, competitor Digit Insurance experienced a 4.5% decline in revenue to Rs 2,142 crore in Q3 FY26, despite an 18% increase in profit to Rs 140 crore. Meanwhile, Navi has recently ventured into motor insurance, heightening competition in the market.