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Digital-first insurer ACKO has appointed ICICI Securities, Morgan Stanley and Kotak Securities as book-running lead managers for its proposed initial public offering, according to sources. The Bengaluru-based company is targeting a valuation of USD 2–2.5 billion and is expected to file draft papers with the market regulator in the coming months. The IPO is likely to include both a fresh issue and an offer-for-sale by existing investors. Founded in 2017, ACKO operates on a direct-to-consumer model, differentiating itself from traditional insurers. The company reported INR 2,837 crore in revenue in FY25, reflecting strong growth alongside a reduction in losses.
ACKO has initiated preparations for its stock market debut by appointing ICICI Securities, Morgan Stanley and Kotak Securities as book-running lead managers for its proposed initial public offering (IPO), according to sources familiar with the development. Advertisement
The Bengaluru-based general insurer is targeting a valuation in the range of USD 2–2.5 billion for the offering. It is expected to file its draft red herring prospectus with the Securities and Exchange Board of India in the coming months, marking a key step towards listing on domestic stock exchanges.
The proposed IPO structure is likely to comprise a combination of a fresh issue of shares and an offer-for-sale by existing shareholders. The final size and composition of the offering will be determined closer to the filing stage, based on market conditions and regulatory approvals.
Founded by Varun Dua, ACKO received its insurance licence in late 2017 and commenced operations in 2018. The company has since raised over USD 583 million in funding from investors including General Atlantic, Multiples PE, Accel, Elevation Capital and Canada Pension Plan Investment Board.
ACKO operates on a direct-to-consumer (D2C) model, which distinguishes it from traditional insurers that rely on agent-led distribution networks. By eliminating intermediaries, the company focuses on digital acquisition, pricing efficiency and simplified product offerings, particularly in motor and health insurance segments.
In FY25, the company reported revenue of INR 2,837 crore, reflecting a year-on-year growth of 35 per cent, significantly higher than the broader insurance sector, where growth remained in single digits. During the same period, ACKO reduced its net losses by 37 per cent, indicating improving operating leverage as the business scales.
The company’s planned listing comes at a time when digital-first financial services firms are increasingly exploring public markets to raise capital and provide exits to early investors. Within the insurance sector, ACKO’s D2C approach positions it alongside newer entrants such as Digit Insurance, while competing with established players like ICICI Lombard.
The IPO is expected to provide capital for business expansion, technology investments and potential product diversification, while also offering partial liquidity to existing shareholders. The timing of the offering will depend on regulatory clearances and prevailing market conditions.
Source - PTI
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