Insurtech unicorn Acko plans $300-400 million IPO: Report
The Indian startup ecosystem has been abuzz with activity in recent years, with numerous companies achieving unicorn status and several others planning to go public through initial public offerings (IPOs). The latest addition to this list is Acko, an insurtech startup that has started preparations to launch an IPO that could raise $300-400 million, according to a report by Livemint. The company is in preliminary talks with bankers, with formal pitches expected to happen next week.
Acko, which achieved unicorn status in 2021, is backed by private equity firms General Atlantic and Multiples Alternate Asset Management. The company’s plans to go public come at a time when the Indian insurance market is growing rapidly, driven by increasing awareness and demand for insurance products. The insurtech sector, in particular, has seen significant growth in recent years, with several startups emerging to disrupt traditional insurance business models.
Acko’s Journey
Acko was founded in 2016 by Varun Dua, a serial entrepreneur with a passion for insurance. The company started as a digital insurance platform, offering a range of insurance products, including health, life, and general insurance. Over the years, Acko has expanded its product offerings and has also launched several innovative products, such as insurance for ride-hailing drivers and cyber insurance.
Acko’s growth has been rapid, with the company achieving unicorn status in 2021. The company has also received significant funding from investors, including General Atlantic and Multiples Alternate Asset Management. Acko’s valuation is estimated to be around $1.5 billion, making it one of the most valuable insurtech startups in India.
IPO Plans
According to the report by Livemint, Acko has started preparations to launch an IPO that could raise $300-400 million. The company is in preliminary talks with bankers, with formal pitches expected to happen next week. The IPO is expected to be launched in the next 12-18 months, subject to market conditions and regulatory approvals.
Acko’s IPO plans are significant, as they mark the first time an insurtech startup in India has planned to go public. The IPO is expected to provide a liquidity event for Acko’s investors, including General Atlantic and Multiples Alternate Asset Management, and will also provide the company with the necessary capital to fund its growth plans.
Growth Prospects
Acko’s growth prospects are significant, driven by the growing demand for insurance products in India. The Indian insurance market is expected to grow at a CAGR of 10-12% over the next five years, driven by increasing awareness and demand for insurance products. The insurtech sector, in particular, is expected to see significant growth, driven by the adoption of digital technologies and the emergence of new business models.
Acko is well-positioned to capitalize on this growth, with its digital insurance platform and innovative products. The company has also expanded its distribution channels, including partnerships with ride-hailing companies and other ecosystem players.
Conclusion
Acko’s plans to launch an IPO are significant, marking the first time an insurtech startup in India has planned to go public. The company’s growth prospects are significant, driven by the growing demand for insurance products in India. With its digital insurance platform and innovative products, Acko is well-positioned to capitalize on this growth and become a leading player in the Indian insurance market.
As the Indian startup ecosystem continues to evolve, it will be interesting to see how Acko’s IPO plans unfold. The company’s success will provide a significant boost to the insurtech sector, and will also provide a liquidity event for investors. With its strong growth prospects and innovative products, Acko is an exciting company to watch, and its IPO plans are likely to generate significant interest among investors and industry observers.
News Source: https://www.newsbytesapp.com/news/business/bengaluru-based-insurtech-unicorn-acko-eyes-400-million-ipo/tldr
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