Digital insurer ACKO appoints bankers for IPO, eyes $2-2.5 bn valuation
ADVERTISEMENT
Bengaluru-based digital insurer ACKO is inching closer for Dalal Street, setting the stage for its public market debut. The startup has roped in ICICI Securities, Morgan Stanley, and Kotak Securities as book-running lead managers for its initial public offering (IPO), signalling that preparations for the offering are gathering pace, according to people familiar with the matter.
The insurer is expected to file its draft red herring prospectus (DRHP) with Securities and Exchange Board of India (Sebi) in the coming months, sources said, requesting anonymity as the discussions remain private.
The proposed IPO is expected to be a mix of fresh issue and an offer for sale (OFS) by existing investors, eyeing a valuation of $2 billion to $2.5 billion, the source added.
Founded by Varun Dua, ACKO received its licence in late 2017 and began operations in 2018. Since inception, it has attracted backing from prominent investors such as General Atlantic, Multiples Private Equity, Accel, Elevation Capital, and Canada Pension Plan Investment Board, with total commitments exceeding $583 million.
In October 2021, ACKO entered the unicorn club after raising $255 million in a funding round led by General Atlantic and Multiples Private Equity at a valuation of $1.1 billion. The round also saw participation from CPPIB, Lightspeed, along with existing investors Intact Ventures and Munich Re Ventures. To date, the company has raised around $600 million, with its latest valuation estimated at approximately $1.4 billion.
ACKO’s business model sets it apart in a sector dominated by traditional insurers such as ICICI Lombard and newer entrants like Digit Insurance, both of which rely significantly on agents and intermediaries. In contrast, ACKO operates a fully digital, direct-to-consumer model, eliminating the intermediary layer that has historically driven up distribution costs.
The company has emerged as one of India’s fastest-growing general insurers. In FY25, ACKO reported revenue of ₹2,837 crore, marking a 35% year-on-year increase. Its net loss narrowed to ₹424 crore, down 57% from ₹667 crore in the previous year.
According to industry data, ACKO collected insurance premiums worth ₹1,407 crore through October in the current financial year, compared with ₹1,207 crore during the same period last year. Health and motor insurance remain its core segments, each contributing roughly ₹600–650 crore in premiums during the first seven months of FY26.