Digital-first insurer ACKO has set the stage for its stock market debut, picking up ICICI Securities, Morgan Stanley and Kotak Securities as book-running lead managers, sources familiar with the development said.

ACKO taps merchant bankers for IPO; targets $2-2.5 billion valuation

Digital-first insurer ACKO has set the stage for its stock market debut, picking up ICICI Securities, Morgan Stanley and Kotak Securities as book-running lead managers, sources familiar with the development said.

The Bengaluru-based firm is eyeing a valuation of about $2-2.5 billion for its initial public offering (IPO) and is expected to file its draft red herring prospectus (DRHP) with the Securities and Exchange Board of India in the coming months, they added.

The IPO is likely to comprise a mix of fresh issue of shares and an offer-for-sale (OFS) by existing investors.

Founded by Varun Dua, ACKO received its licence in late 2017 and commenced operations in 2018. The company has raised over USD 583 million in funding from investors, including General Atlantic, Multiples PE, Accel, Elevation Capital and Canada Pension Plan Investment Board.

In contrast to legacy insurers such as ICICI Lombard and newer players like Digit Insurance, which rely significantly on agents and intermediaries, ACKO operates on a direct-to-consumer (D2C) model, eliminating the traditional distribution layer.

The company has emerged as one of the fastest-growing general insurers in India. In FY25, ACKO reported revenue of Rs 2,837 crore, marking a 35 per cent increase over the previous fiscal, significantly higher than the sub-10 per cent growth recorded by the broader insurance sector. It also reduced its net losses by 37 per cent year-on-year, the sources said.

Published on April 27, 2026