Banker Mandates Finalised This Week as Insurtech Firm Prepares DRHP Filing
Acko has appointed ICICI Securities, Morgan Stanley, and Kotak Securities as book-running lead managers for its planned initial public offering (IPO), according to people familiar with the matter.
The banker appointments were finalised this week, the people said, as the Bengaluru-based insurer prepares to file its draft red herring prospectus (DRHP) with the Securities and Exchange Board of India (SEBI).
The company is targeting a valuation of up to $2.5 billion (approximately ₹18,800–₹23,500 crore). The IPO is expected to include a mix of fresh issue and offer for sale (OFS), though the split has not been disclosed.
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Acko Expands Beyond Auto Insurance into Health and Embedded Products
Founded in 2016 by Varun Dua, Acko started as a digital-first auto insurance provider and later expanded into retail health insurance.
The company entered the health segment in March 2023 and acquired Parentlane as part of its expansion. Acko distributes insurance products through partnerships with platforms such as PhonePe and MyGate, and through integrations with over 50 platforms including Oyo, redBus, Zomato, HDB Financial Services, and Urban Company.
Acko said it has served over 78 million customers and issued more than 1 billion policies to date.
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Revenue Growth Outpaces Industry While Losses Narrow
Acko reported revenue of ₹2,837 crore in FY25, reflecting 35% year-on-year growth. The company also reduced its net losses by 37% during the same period.
The company stated that its growth outpaced the broader insurance sector, though comparative industry growth figures were not cited in its disclosures.
Funding History and Investor Backing
Acko has raised around $450–460 million from investors including General Atlantic, Accel, Elevation Capital, and the FPGA family foundation, based on publicly reported funding rounds.
IPO Structure and Key Unknowns
While banker appointments and valuation targets indicate IPO readiness, several key details remain undisclosed:
- Fresh issue size
- Offer-for-sale (OFS) participation by existing investors
- DRHP filing timeline (quarter or month)
FAQs: Acko IPO
What is Acko’s IPO valuation target?
Acko is targeting a valuation of up to $2.5 billion (₹18,800–₹23,500 crore).
Which banks are managing Acko’s IPO?
ICICI Securities, Morgan Stanley, and Kotak Securities have been appointed as lead managers.
When will Acko file its DRHP?
The company has not disclosed a timeline yet.
Is Acko profitable?
No, the company is not yet profitable but has reduced its net losses by 37% year-on-year.
What does Acko do?
Acko is a digital insurance company offering auto, health, and embedded insurance products through online platforms and partnerships.
