Insurtech Unicorn Acko Eyes $300–$400 Million IPO in 2026–27
Sun Dec 21 2025
Indian insurtech unicorn Acko is accelerating preparations for a potential initial public offering (IPO), with plans to raise $300 million to $400 million through a public listing expected between 2026 and 2027.
The Bengaluru-based company is currently in early-stage discussions with investment bankers, according to people familiar with the matter. Formal pitch processes are expected to begin in the coming months, followed by banker appointments thereafter.
IPO Structure and Objectives
The proposed IPO is expected to include a mix of primary capital issuance and secondary share sales.
- Primary capital will provide fresh funds to support Acko’s next phase of growth
- Secondary sales will offer partial exits to early investors
The move comes at a time when India’s public markets remain receptive to new-age consumer internet and fintech companies, with a strong pipeline of tech IPOs expected over the next two years.
Strong Backing and Prominent Investors
Acko is backed by a diverse group of global and domestic investors, including growth equity funds, strategic partners, and reinsurance players. The company has also attracted high-profile individual backers, underscoring long-term confidence in its digital-first insurance model.
Since inception, Acko has raised over $450 million in private funding, helping it scale rapidly across multiple insurance verticals.
From Motor Insurance to a Broader Insurance Platform
Founded in 2016 by Varun Dua and Ruchi Deepak, Acko began as a motor insurance-focused digital insurer, using technology, data-driven underwriting, and simplified claims to challenge traditional insurers.
Over time, the company has expanded into multiple insurance categories and is now strengthening its health insurance business. Acko is working toward an integrated health offering that brings together:
- Medical testing
- Policy issuance
- Claims processing
—all within a single digital ecosystem.
Embedded Insurance and Enterprise Growth
One of Acko’s key growth drivers has been embedded insurance.
The company has partnered with 50+ enterprises across sectors such as:
- Mobility
- Consumer electronics
- E-commerce
- Financial services
These partnerships allow insurance products to be seamlessly bundled at the point of purchase, reducing friction for customers.
In addition, Acko runs a large group health insurance business, serving corporate clients across industries.
According to the company, it has:
- Served 78+ million customers
- Issued over one billion insurance policies since inception
Improving Financial Performance
Acko has shown steady improvement in its financials as it scales.
In FY 2024–25:
- Consolidated net loss narrowed to ₹424 crore, from ₹667 crore the previous year
- Operating revenue grew to ₹2,836 crore, up from ₹2,106 crore in FY 2023–24
The improvement reflects stronger scale, better operating leverage, and progress toward sustainable profitability.
Market Context: Timing the Public Markets
Acko’s IPO plans come amid a robust phase for India’s primary markets. Several new-age technology companies have listed recently, while regulatory approvals suggest a crowded IPO pipeline through 2026–27.
India’s insurance market itself continues to grow rapidly, supported by:
- Rising financial awareness
- Increased digital adoption
- Ongoing regulatory reforms
Industry estimates project the Indian insurance market to cross $220 billion by 2025–26, highlighting the long-term opportunity for digital insurers.
Looking Ahead
If Acko proceeds with its IPO, it would represent one of the most significant public listings in India’s insurtech space. Beyond raising growth capital, the listing would serve as a key test of public market appetite for digital-first insurance platforms.
As India’s insurance landscape evolves, Acko’s public-market debut could help define how tech-led insurers are valued—and how confidently they can scale—on the global stage.
Sun Dec 21 2025
