Mumbai: Digital insurance company ACKO Technology & Services Pvt. Ltd. plans to file draft papers for an initial public offering of $300 million by September, said two people aware of the development, expecting a valuation of $2 billion.
“It is likely around August-September that Acko will file its DRHP (Draft Red Herring Prospectus) with the Securities and Exchange Board of India,” the first person said. The second person confirmed that the company will file by September for a potential listing by the end of this financial year if market conditions sustain. Both people spoke on condition of anonymity.
The General Atlantic-backed company appointed ICICI Securities Ltd, Kotak Mahindra Capital Co, and the India unit of Morgan Stanley to manage the share sale, Mint reported in April.
FY26 has been a good year for Acko and the company believes that its model is working, giving it confidence going into the listing, one of the two people said. Acko General Insurance, the person said, turned profitable in the fourth quarter of FY26. The company has yet to publish its financials for FY26.
If the IPO goes as planned, the company will join a growing list of companies looking to tap the public markets. However, recent geopolitical tensions have sent the equity markets into a tailspin, prompting several companies to delay or reassess their listing plans.
Backed by Multiples Private Equity, CPP Investments, Accel Partners and Elevation, among others, Acko’s offering is expected to include a fresh issue of shares and an offer for sale by existing investors. The plan is to file confidentially, a route that allows companies to avoid immediately disclosing detailed financial information.
Founded by Varun Dua in 2016, Bengaluru-based Acko Technology and Services Private Ltd acts as the holding company for Acko General Insurance and Acko Life Insurance Ltd, collectively known as the Acko Group. It sells motor, health and life insurance directly to consumers, thereby cutting out distributors and intermediaries.
Wide product choice
The company wants to leverage its direct-to-consumer model to ensure that customers have access to a wide array of products under the same umbrella. Animesh Das, the managing director and chief executive officer of Acko General Insurance, said that its products are designed to address a family's financial protection needs.
“A customer that already has auto insurance—we know that user's risk profile and that allows us to offer affordable health insurance products or cheaper insurance for the second car since there is no additional customer acquisition cost,” he explained.
Das declined to comment on the company’s listing plans.
The IPO push comes as Acko reports improving financial metrics. Acko Technology reported a consolidated loss of ₹424.4 crore on the back of revenue of ₹2,887.4 crore in FY25, according to latest filings in November. In FY24, it reported a loss of ₹670 crore and revenue of ₹2,106.2 crore.
In April, Mint also reported that the company laid off about 60 employees—about 5% of its workforce—as it accelerated artificial intelligence integration across operations. The job cuts coincided with the departure of chief marketing officer Ashish Mishra, who had been with the Acko since August 2020.
Acko competes with legacy insurers such as Tata AIG and Bajaj Allianz. Other digital-first platforms distributing insurance in India include Go Digit Insurance, InsuranceDekho, CarDekho, Spinny and PolicyBazaar.
