Digital insurance startup Acko has laid off around 60 employees, which is about 5% of its total workforce. This move comes as the company prepares for its upcoming IPO and looks to reshape its operations.
Founded in 2016 by Varun Dua and Ruchi Deepak, Acko has become one of India’s leading online insurance platforms. The company says it has served more than 78 million customers and issued over a billion policies. It started with auto insurance but has now expanded into health insurance and corporate plans.
AI shift leads to restructuring
Acko said the layoffs are not just about cutting costs but part of a bigger shift towards becoming an AI-driven company. As artificial intelligence takes over many tasks, some roles are no longer needed.
The company plans to use AI across different areas like claims, underwriting, marketing, and customer support. This will help reduce manual work and improve speed. For example, Acko already offers quick claim settlements for small vehicle damages using AI. At the same time, Chief Marketing Officer Ashish Mishra has stepped down after more than five years. Nitin Khanna, who has been with the company for several years, will take over the role.
Strong financials support IPO goals
Acko’s financial performance has improved in the last year. Its revenue grew by 35% to ₹2,836.8 crore in FY25, while its losses reduced by 57% to ₹424.4 crore. The company has also cut down its spending on employees and marketing. It now aims to become profitable in the next 12 to 18 months, which is important before going public.
Acko is planning to launch its IPO in FY27 and hopes to raise $300 million to $400 million. It is backed by investors like Amazon and Accel, and competes with companies like Go Digit and Policybazaar. With its focus on AI and better cost control, Acko is working towards building a stronger and more profitable business before entering the stock market.