Digital insurer Acko progresses towards its IPO in India.

      The digital insurer Acko, which is supported by General Atlantic, Canada Pension Plan Investment Board, and Accel, is planning to secretly submit its Draft Red Herring Prospectus (DRHP) to SEBI in the second half of 2026. In FY25, the company saw a revenue increase of 35% to Rs 2,837 crore and reduced its net losses by 37%. Acko has secured more than $583 million in total funding.

      Based in Bengaluru and founded by Varun Dua, Acko has officially engaged investment banks for its initial public offering (IPO). It has appointed Kotak Mahindra Capital, ICICI Securities, and Morgan Stanley as the lead managers for the book-running process. The company aims to raise up to $350 million, and it is targeting a valuation between $2 billion and $2.5 billion, according to sources who spoke to Bloomberg and PTI on the condition of confidentiality.

      The IPO is anticipated to include both new share issuances and an offer-for-sale segment from current investors. According to Inc42, Acko plans to use the confidential pre-filing method to submit its draft red herring prospectus to the Securities and Exchange Board of India in the latter half of 2026, with a goal to list in the first half of 2027.

      Acko obtained its insurance license in late 2017 and commenced operations the following year. Unlike conventional Indian insurers like ICICI Lombard and newer competitors such as Digit Insurance, which heavily rely on agents and intermediaries for policy distribution, Acko has established a direct-to-consumer model from the beginning, removing the distribution layer and exclusively offering motor, health, and travel insurance through its own digital channels and embedded partnerships.

      The company is integrated with platforms like Amazon India and Ola, allowing access to large user bases without the need for traditional agents. Acko's financial situation has seen considerable improvement. In FY25, it reported a revenue of Rs 2,837 crore (approximately $340 million), marking a 35% increase from the previous fiscal year, far surpassing the sub-10% growth of India's overall insurance sector.

      Net losses decreased by 37% year-on-year. Although the company has not yet become profitable, the combination of robust top-line growth and significant loss reduction is the trajectory that Indian tech-focused businesses must demonstrate to secure access to public markets at a premium valuation.

      The target valuation of $2 billion to $2.5 billion indicates a substantial discount from its last known private valuation; Acko was valued at $1.4 billion during its Series D round in 2021 and has accumulated over $583 million in total funding, with backers including General Atlantic, Canada Pension Plan Investment Board, Multiples PE, Accel, and Elevation Capital.

      The landscape of the Indian IPO market is a driving factor behind the timing. In 2025, India was one of the busiest IPO markets globally, with companies raising roughly Rs 1.95 trillion ($21.6 billion), surpassing the previous year's record of Rs 1.73 trillion. Strong inflows from domestic mutual funds have maintained demand for new listings, despite disruptions in global equity markets caused by the Iran war and US-China trade tensions.

      For an insurtech company that has expanded through embedded distribution and digital channels, the Indian public equity market presents a familiar investor base and offers a valuation premium for technology-driven business models compared to traditional insurance multiples.

      Utilizing the confidential DRHP filing process allows Acko to undergo regulatory review without initiating the public disclosure requirements of a standard SEBI filing, providing flexibility in timing based on market conditions.

      Acko operates at the confluence of two significant structural opportunities in Indian financial services: the low insurance penetration relative to GDP, with India's levels remaining well below global norms, and the transition from offline, agent-led distributions to digital channels that lower acquisition costs and enhance customer data quality. The company's direct model gives it access to richer customer data than intermediaries typically provide, theoretically allowing for better risk pricing. However, whether this structural advantage leads to underwriting profitability at scale is the benchmark the public market will evaluate.

      Digit Insurance, which debuted on Indian exchanges in May 2024, serves as the closest public comparable; it concluded its IPO with a valuation of around Rs 22,800 crore (~$2.7 billion) and has experienced significant stock volatility since. Acko's valuation target of $2 billion to $2.5 billion suggests a similar market capitalization at a comparable stage of development.