Acko wants to raise $300M via IPO at $2B valuation
What's the story
Acko, a leading digital insurance provider, is gearing up to file its draft papers for an initial public offering (IPO) worth around $300 million. The company is expecting a valuation of about $2 billion. According to Mint, Acko is likely to submit its Draft Red Herring Prospectus (DRHP) with the Securities and Exchange Board of India (SEBI) around August-September.
Market strategy
Potential listing by end of FY27
Acko is eyeing a potential listing by the end of this fiscal year, subject to market conditions. The company has appointed ICICI Securities Ltd., Kotak Mahindra Capital Co., and Morgan Stanley India to manage the share sale. This comes after a successful FY26 for Acko, which has seen its business model work well, giving it confidence going into the listing process.
Financials
Acko General Insurance turned profitable in Q4 FY26
Acko General Insurance turned profitable in the fourth quarter of FY26, although the company has not yet released its financials for this period. If all goes according to plan with the IPO, Acko will join a growing number of companies looking to tap into public markets. However, recent geopolitical tensions have rattled equity markets, leading many companies to postpone or rethink their listing plans.
Offer details
IPO likely to be a mix of fresh shares, OFS
Acko's IPO is likely to be a mix of a fresh issue of shares and an offer for sale by existing investors. The company plans to file confidentially, which means it can avoid disclosing detailed financial information immediately. Founded in 2016 by Varun Dua, Bengaluru-based Acko Technology and Services Private Ltd is the holding company for Acko General Insurance and Acko Life Insurance Ltd.
Business strategy
Company sells motor, health, life insurance directly to consumers
Acko sells motor, health, and life insurance directly to consumers, cutting out middlemen. The company wants to leverage its direct-to-consumer model to ensure customers have access to a wide range of products under one roof. Animesh Das, MD and CEO of Acko General Insurance, said their products are aimed at meeting a family's financial protection needs.