Acko IPO Plans Advance, Startup May Seek USD 2-2.5 Billion Valuation

Acko General Insurance Ltd has appointed investment banks to manage its proposed initial public offering (IPO), with the insurtech firm targeting a valuation between USD 2 to 2.5 billion. The company’s IPO is expected to be a mix of a fresh issue and an offer for sale.

The company plans to file its draft red herring prospectus (DRHP) through the confidential pre-filing route before the end of the current calendar year, as per reports, with the aim of getting listed in early 2027. The move comes as firms increasingly use this route to keep financial details private during early regulatory review.

Book Running Lead Managers Hired

The Bengaluru-based company has hired ICICI Securities Ltd, Kotak Mahindra Capital Co, and Morgan Stanley India Co Ltd as book-running lead managers for the share sale, as per people aware of the development.

Acko counts General Atlantic, Accel, Amazon.com, and the Canada Pension Plan Investment Board among its investors. The company offers products across motor, health, and travel segments.

The planned IPO is set to happen when investor interest in technology-led financial services firms remains active, though valuations have seen some moderation after earlier peaks.

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Rising Insurtech Market

Also, Acko’s IPO comes at a time when India’s insurtech market is witnessing a rise. The sector was valued at about USD 10 billion in 2024. Acko’s IPO plans add to a growing pipeline of new-age companies exploring public listings.

Notably, after a strong run last year, India’s IPO market has slowed due to the conflict in the Middle East.

Sources:

Outlook Business

The Times of India