Acko Plans IPO with $2-$2.5 Billion Valuation, Picks Leading Bankers

Insurtech company Acko is moving forward with its plan to launch an initial public offering (IPO) valued between $2 billion and $2.5 billion, as per The Moneycontrol report.  

The firm has engaged ICICI Securities, Morgan Stanley, and Kotak Securities as the book-running lead managers for the IPO. 

Acko's Journey in Insurance 

Founded in 2016 by Varun Dua, Acko initially operated in the direct-to-consumer auto insurance segment. In 2023, the company expanded into the retail health insurance sector with the acquisition of Parentlane.  

Through partnerships with platforms like PhonePe, MyGate, Oyo, and Zomato, Acko offers comprehensive insurance products directly to consumers. 

The insurtech firm claims to have issued over 1 billion insurance policies to more than 78 million unique customers.  

In the fiscal year 2025, Acko reported revenue of ₹2,837 crore, marking a 35% increase from the previous year. The firm also managed to reduce its net losses by 37% year-on-year. 

IPO Structure and Objectives 

The upcoming IPO is expected to include a combination of a fresh issue and an offer for sale by existing investors. This move is aimed at raising capital and enabling investors to liquidate part of their holdings.  

The company plans to file its draft red herring prospectus (DRHP) with the Securities and Exchange Board of India (SEBI) soon. 

Read More: Acko Cuts 5% Workforce Amid AI Adoption and IPO Plans! 

Current Valuation and Investments 

Acko is aiming for a valuation of approximately ₹16,600 crore to ₹20,750 crore. The company has raised around $450-460 million from investors including General Atlantic, Accel, Elevation Capital, and FPGA Family Foundation. 

Acko's Strategic Partnerships and Performance 

Acko has significantly grown its strategic partnerships, collaborating with over 50 platforms to offer embedded insurance services.  

These strategic alliances have enhanced Acko's capability in delivering diversified insurance solutions, playing a crucial role in its performance growth. 

Conclusion 

Acko's strategic shift towards launching an IPO with a $2-$2.5 billion valuation signifies its significant growth trajectory and market confidence. The company’s partnerships and expanding portfolio hint at a promising position in the insurtech space, enhancing its capacity to attract investors. 

Disclaimer: This blog has been written exclusively for educational purposes. The securities or companies mentioned are only examples and not recommendations. This does not constitute a personal recommendation or investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions. 

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