Bengaluru-based Insurtech ACKO General Insurance advances its IPO plans and appoints ICICI Securities, Morgan Stanley, and Kotak Mahindra Capital as book-running lead managers, according to a report.
ACKO is targeting a valuation in the range of USD 2 to 2.5 billion (~INR 16,600–20,750 crore). ACKO IPO is expected to raise ~USD 300 to 500 million (~INR 2,850 – 4,700 crore). The IPO will likely comprise a mix of fresh issuance and an offer for sale by existing investors.
The company is preparing to file its draft papers with the Securities and Exchange Board of India through the confidential pre-filing route. The report also indicates that the listing could materialise by early 2027, subject to market conditions.
Acko IPO: Business Model
Founded in 2016 by Varun Dua, ACKO has positioned itself as a fully digital insurer that bypasses traditional agent-led distribution. This direct-to-consumer approach significantly reduces acquisition costs and enables competitive pricing, which has been a key driver of its rapid scale-up.
The company has built a strong presence in motor and health insurance while leveraging embedded distribution through partnerships with platforms such as Amazon, PhonePe, Zomato, Oyo, and redBus. This ecosystem-driven strategy has allowed ACKO to integrate insurance offerings seamlessly into customer journeys, accelerating adoption.
Scale, Growth and Financial Trajectory
ACKO’s operating metrics reflect strong traction in a relatively short period. The company claims to have served over 78 million unique customers and issued more than one billion policies to date, underlining the scalability of its digital infrastructure.
Financially, the company is demonstrating a clear growth trajectory. For FY25, ACKO reported revenue of INR 2,837 crore, marking a 35% year-on-year increase—well above the broader insurance sector’s growth rate. More importantly, losses have narrowed significantly, with net loss reducing to INR 424 crore from INR 667 crore in the previous year. This trend suggests improving operating leverage as the business scales.
Investor Backing and Valuation Evolution
ACKO’s journey has been supported by a strong lineup of global investors, including General Atlantic, Accel, Canada Pension Plan Investment Board, and Amazon. The company has raised close to USD 600 million (~INR 5,650 crore) to date and last achieved unicorn status in 2021 with a valuation of USD 1.1 billion (~INR 10,360 crore).
Industry Opportunity and Competitive Landscape
India’s insurance sector remains structurally underpenetrated, with insurance penetration at around 3.7% of GDP as of 2024—significantly below global averages. This gap presents a long-term opportunity for digital-first players to expand access and drive adoption.
At the same time, competition is intensifying across both traditional and digital segments. Established insurers such as ICICI Lombard and Bajaj Allianz continue to dominate scale, while new-age platforms like Go Digit Insurance and PolicyBazaar are aggressively expanding their digital footprint. ACKO’s differentiation will hinge on its ability to maintain cost efficiency while scaling premium growth.
In the run-up to its public listing, ACKO appears to be focusing on operational discipline alongside growth. The company has been investing in technology, including artificial intelligence, to enhance efficiency and streamline processes. Recent cost optimisation measures, including workforce rationalisation, further indicate a shift towards profitability—an important factor for investor confidence in new-age IPOs.
Rajat Bhati has a strong technical background and 5 years of experience in the stock market. He focuses on equity research, technical analysis, IPO valuations, and risk management, helping investors make clearer, data-backed decisions. Today, he works full-time to educate people about the opportunities in IPO market.
