Acko Secures Investment Banking Partners for Upcoming IPO, Aims for $2-$2.5 Billion Valuation

Acko Prepares for IPO with Top Investment Banks on Board

Insurtech firm Acko has chosen ICICI Securities, Morgan Stanley, and Kotak Securities as book-running lead managers for its planned initial public offering. The Bengaluru-based company is reportedly set to file its draft red herring prospectus (DRHP) with the Securities and Exchange Board of India (SEBI) in the coming months.

Acko is targeting a valuation of $2-$2.5 billion through the IPO, which is expected to include a mix of a fresh issue and an offer for sale (OFS) by existing investors. The company aims to achieve a valuation in the range of approximately Rs 16,600 crore to Rs 20,750 crore.

Founded in 2016 by Varun Dua, Acko began its journey in the direct-to-consumer (D2C) auto insurance space. In March 2023, the firm expanded into the retail health insurance segment by acquiring Parentlane. Acko has established partnerships with over 50 platforms, including PhonePe, MyGate, Oyo, redBus, Zomato, HDB Financial Services, and Urban Company, to offer embedded insurance products.

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The company boasts an impressive track record, having distributed insurance policies to over 78 million unique customers and issued 1 billion+ insurance policies to date. In FY25, Acko reported revenue of Rs 2,837 crore, a 35% increase from the previous year, outpacing the sub-10% growth experienced in the broader insurance sector. The company also reduced its net losses by 37% year-on-year.

Acko has secured funding of around $450-$460 million from prominent investors such as General Atlantic, Accel, Elevation Capital, FPGA family foundation, and others.

Comparison of Acko's Revenue Growth and Insurance Policies Issued

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Note: The growth rate for FY24 is calculated based on the provided revenue figure, assuming a decrease from FY23.