The digital insurer, backed by General Atlantic, Canada Pension Plan Investment Board, and Accel, plans to file its DRHP confidentially with SEBI in H2 2026. In FY25 it grew revenue 35% to Rs 2,837 crore and cut net losses by 37%. It has raised over $583 million in total funding.
Acko, the Bengaluru-based digital-first general insurer founded by Varun Dua, has formally hired investment banks for its initial public offering.
The company has engaged Kotak Mahindra Capital, ICICI Securities, and Morgan Stanley as book-running lead managers. It is seeking to raise as much as $350 million and is targeting a valuation of $2 to $2.5 billion, according to people familiar with the matter who spoke to Bloomberg and PTI on condition of anonymity.
The IPO is expected to comprise a mix of fresh share issuance and an offer-for-sale component from existing investors.
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Acko plans to file its draft red herring prospectus with the Securities and Exchange Board of India via the confidential pre-filing route in the second half of 2026, with a listing targeted for the first half of 2027, according to Inc42.
Acko received its insurance licence in late 2017 and began operations in 2018. Unlike traditional Indian insurers such as ICICI Lombard and newer challengers like Digit Insurance, which both rely substantially on agents and intermediaries to distribute policies, Acko built a direct-to-consumer model from the outset, eliminating the distribution layer and selling motor, health, and travel insurance exclusively through its own digital channels and embedded partnerships.
The company is embedded within platforms including Amazon India and Ola, which expose its products to large captive user bases without requiring a traditional agent network.
The financial picture has been improving materially. In FY25, Acko reported revenue of Rs 2,837 crore (approximately $340 million), a 35% increase over the previous fiscal year, significantly above the sub-10% growth recorded by India's broader insurance sector.
Net losses fell 37% year-on-year. The company is not yet profitable, but the combination of strong top-line growth and meaningful loss reduction is the trajectory that Indian tech-oriented businesses have needed to demonstrate to access the public market at a premium valuation.
The $2 to $2.5 billion target valuation represents a meaningful discount to the last known private valuation: Acko was valued at $1.4 billion in its Series D round in 2021 and has raised over $583 million in total, with General Atlantic, Canada Pension Plan Investment Board, Multiples PE, Accel, and Elevation Capital among its backers.
The India IPO market context is the engine behind the timing. India ranked among the world's busiest IPO markets in 2025, with companies raising approximately Rs 1.95 trillion ($21.6 billion), exceeding the prior year's record of Rs 1.73 trillion.
Strong inflows from domestic mutual funds have sustained demand for new listings even as global equity markets have been disrupted by the Iran war and US-China trade tensions.
For an insurtech company that has grown through embedded distribution and digital channels, the Indian public equity market offers both a familiar investor base and a valuation premium for technology-enabled business models relative to traditional insurance multiples.
The confidential DRHP filing route allows Acko to complete regulatory review without triggering the public disclosure requirements that apply to a standard SEBI filing, giving it flexibility to adjust timing based on market conditions.
Acko sits at the intersection of two of the largest structural opportunities in Indian financial services: the underpenetration of insurance relative to GDP, India's insurance penetration remains well below global averages, and the shift from offline, agent-led distribution to digital channels that reduces acquisition costs and improves customer data quality.
The company's direct model gives it richer data on its customers than an intermediary-dependent insurer and, in principle, better pricing capability for risk selection. Whether that structural advantage translates to underwriting profitability at scale is the test the public market will apply.
Digit Insurance, which listed on Indian exchanges in May 2024, provides the nearest public comparable: Digit closed its IPO at a valuation of approximately Rs 22,800 crore (~$2.7 billion), and its stock has traded with significant volatility since.
Acko's target of $2 to $2.5 billion implies a broadly similar market capitalisation at a similar stage of maturity.