Acko has appointed investment banks to prepare for a confidential initial public offering filing, according to sources familiar with the matter.
The digital insurer is targeting a valuation of $2 billion to $2.5 billion, the sources said. It is expected to file its draft prospectus in 2026 and is working towards a market debut in early 2027.
The planned share sale would mark the next step in Acko's growth plans as it looks to tap public markets. A confidential filing route allows companies to begin the listing process without immediately disclosing detailed documents in the public domain.
The move comes at a time when India's IPO market has seen a slow opening to 2026 after two straight years of record fundraising. Share markets have faced pressure from geopolitical tensions, weaker earnings growth and mixed foreign investor flows.
Morgan Stanley, Kotak Mahindra Capital and ICICI Securities have been appointed to manage the proposed offering, the sources said.
Founded in 2016 by Varun Dua, Acko began in the direct-to-consumer auto insurance segment. In March 2023, the company entered retail health insurance and acquired Parentlane to expand its health business. Acko is backed by investors including General Atlantic, Multiples, CPP Investments, Accel, Elevation Capital, Lightspeed, Ventureast, Ascent Capital and Intact.
The company has tie-ups with PhonePe and MyGate to offer insurance products directly on their platforms. It also has partnerships with more than 50 platforms, including Oyo, redBus, Zomato, HDB Financial Services and Urban Company, to distribute embedded insurance.
Acko has emerged as a major player in India's insurance market. In FY25, revenue rose 35% year on year to Rs 2,837 crore. Net loss narrowed 37% from a year earlier, according to media reports in November 2025.
Bloomberg had reported in January that Acko had invited proposals from investment banks for a possible IPO that could raise as much as $350 million, according to people familiar with the matter.
Acko management did not comment on queries from NDTV Profit.
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