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 gearing up for initial public offerings (IPOs). The latest to join this bandwagon 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, backed by private equity firms General Atlantic and Multiples Alternate Asset Management, achieved unicorn status in 2021 and is now looking to take its growth to the next level through a public listing.
Acko, which was founded in 2016, has been a pioneer in the insurtech space in India, offering a range of insurance products to consumers, including health, life, and general insurance. The company has been growing rapidly, with its revenues increasing manifold over the past few years. With its strong track record of growth and a solid business model, Acko is now looking to raise funds through an IPO to further accelerate its expansion plans.
According to the report, Acko has started preliminary talks with bankers, with formal pitches expected to happen next week. The company is likely to file its draft red herring prospectus (DRHP) with the Securities and Exchange Board of India (SEBI) in the coming weeks, which will provide more details about the IPO, including the issue size, price band, and timeline.
The IPO plans of Acko come at a time when the Indian insurance industry is witnessing significant growth, driven by increasing awareness and demand for insurance products. The industry is expected to continue growing in the coming years, driven by factors such as rising income levels, increasing healthcare costs, and a growing middle class. With its strong presence in the insurtech space, Acko is well-positioned to capitalize on this growth and expand its market share.
Acko’s decision to go public is also a testament to the growing maturity of the Indian startup ecosystem. Over the past few years, several Indian startups have achieved unicorn status, and many of them are now looking to raise funds through public listings. This trend is expected to continue, with several other startups, including Byju’s, Flipkart, and Paytm, also planning to go public in the near future.
The IPO of Acko is expected to be one of the most highly anticipated public listings in the Indian startup space, given the company’s strong growth track record and its position as a leader in the insurtech industry. The listing is expected to provide a significant exit opportunity for Acko’s investors, including General Atlantic and Multiples Alternate Asset Management, which have backed the company since its early days.
In addition to providing an exit opportunity for its investors, the IPO is also expected to provide Acko with the necessary funds to further expand its operations and invest in new technologies. The company has been investing heavily in artificial intelligence, machine learning, and data analytics to improve its underwriting capabilities and enhance customer experience. With the funds raised through the IPO, Acko is likely to accelerate its investments in these areas and explore new business opportunities.
The news of Acko’s IPO plans has been welcomed by the Indian startup ecosystem, with many entrepreneurs and investors viewing it as a positive development. The listing is expected to provide a boost to the Indian insurtech industry, which has been growing rapidly in recent years. It is also expected to provide a benchmark for other insurtech startups in India, which are looking to raise funds and expand their operations.
In conclusion, the plans of Acko to launch an IPO are a significant development in the Indian startup ecosystem. With its strong growth track record, solid business model, and leadership position in the insurtech industry, Acko is well-positioned to capitalize on the growing demand for insurance products in India. The IPO is expected to provide the company with the necessary funds to further expand its operations and invest in new technologies, and is likely to provide a significant exit opportunity for its investors.
News Source: https://www.newsbytesapp.com/news/business/bengaluru-based-insurtech-unicorn-acko-eyes-400-million-ipo/tldr
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