Acko to make confidential filing for $250 million IPO; targets around $2.5 billion valuation: sources

Synopsis

Digital insurer Acko is gearing up for a confidential IPO, aiming to raise approximately $250 million and seeking a valuation between $2-2.5 billion, according to these people familiar with the matter. Appointing top investment banks, the company plans to file its prospectus by June. Acko, founded by Varun Dua, offers direct-to-consumer insurance and has significant investor backing.

New-age insurance company Acko is planning to make a confidential filing for an initial public offering ( IPO) seeking to raise around $250 million, as per people in the know. The IPO is likely to value Acko at aprons of $2- $2.5 billion, according to these people familiar with the matter.

The Bengaluru-based insurer has appointed Morgan Stanley, Kotak Securities and ICICI Securities as book-running lead managers for the offering. The company plans to file its draft red herring prospectus before the end of June.

Acko offers general, health and life insurance products directly to consumers, bypassing traditional agents and intermediaries. The company was founded by Varun Dua, who previously built insurance distributor Coverfox. Acko received its regulatory licence in 2017 and commenced operations the following year.

Its investor base includes General Atlantic, Multiples PE, Accel Partners, Elevation Capital, and Canada Pension Plan Investment Board, which have collectively deployed over $583 million into the company.

In FY26, Acko underwrote motor insurance premiums of Rs 1,186 crore and health insurance premiums of Rs 1,235 crore.

For FY25, the company reported total revenue of Rs 2,887 crore and a net loss of Rs 424 crore, per filings with the Ministry of Corporate Affairs. Though still loss-making, Acko has sharply reduced its deficit — down from Rs 670 crore in FY24.

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