Digital insurance company Acko is getting ready to go public and raise between $250 million and $400 million. The company is aiming for a valuation of around $2–2.5 billion. To manage the IPO, it has hired top investment banks like Morgan Stanley, ICICI Securities, and Kotak Mahindra Capital.
Founded in 2016 by Varun Dua and Ruchi Deepak, Acko works as a fully digital insurance company. It sells policies directly to customers without using agents or brokers. This helps reduce costs and makes insurance more affordable. A big part of its growth comes from “embedded insurance,” where small insurance plans are offered directly on platforms like Amazon, Ola, and Zomato during checkout.
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Revenue grows as losses come down
Acko has shown strong growth in the last financial year. In FY25, its revenue increased by around 35% to ₹2,836.8 crore. At the same time, its losses reduced by about 37% to ₹424.4 crore. This shows the company is moving closer to becoming profitable.
The company has also controlled its expenses better. It reduced employee costs and cut down on advertising spends. Because of this, Acko now spends ₹1.17 to earn every rupee, compared to ₹1.34 earlier. Acko plans to become fully profitable by FY27. Its motor and health insurance businesses are performing well and are expected to drive future growth. The company has also entered life insurance with a simple strategy—focusing only on term plans and retirement products, avoiding complex investment-linked policies.
Regulatory challenges and next steps
Acko is also facing strict rules from the Insurance Regulatory and Development Authority of India. The regulator has asked the company to follow expense rules by FY26 and did not allow extra time. Earlier, Acko was also fined ₹1 crore for certain payment practices.
Even with these challenges, Acko has maintained strong customer service. Its claim settlement ratio is above 93%, and most claims are settled within 30 days. Before the IPO, some early investors are selling shares to new domestic investors. Acko plans to file its IPO papers confidentially and is likely to launch in early 2027, marking an important step in its growth journey.