Digital insurer Acko has trimmed about 60 roles—roughly 5% of its workforce—as it aligns operations ahead of a planned market debut. The restructuring underscores a pivot to automation and data-driven processes, with the company signalling tighter cost control and sharper execution across core functions.
AI-led operating model
Founded in 2016 by Varun Dua and Ruchi Deepak, Acko has grown into a prominent online insurance platform, claiming over 78 million customers and more than one billion policies issued. Initially focused on motor cover, it now offers health insurance and enterprise solutions.
The latest job cuts are tied to a broader transition to an AI-first operating model. Acko said artificial intelligence will be embedded across claims, underwriting, marketing, and customer support to reduce manual interventions and accelerate turnaround times. The company already uses AI for rapid settlement of minor motor claims.
In a parallel leadership change, Chief Marketing Officer Ashish Mishra has stepped down after over five years. Long-time executive Nitin Khanna will take over marketing responsibilities.
Financial trajectory and IPO timeline
Acko reported a 35% rise in operating revenue to ₹2,836.8 crore in FY25, alongside a 57% reduction in losses to ₹424.4 crore. Management has curtailed employee and marketing expenses and is targeting profitability within the next 12–18 months—an important milestone before listing.
The company is preparing for an initial public offering in FY27, with a targeted raise of $300–400 million, according to people aware of the plan. Acko counts Amazon and Accel among its backers and competes with players such as Go Digit and Policybazaar. Executives say the AI build-out, coupled with disciplined spending, is aimed at improving efficiency, claim accuracy, and customer experience ahead of the public markets.
