Acko, the digital insurance firm, has laid off about 60 employees, roughly 5% of its workforce, as it restructures ahead of an expected IPO. The company says the move aligns with a broader shift to automation and artificial intelligence to reshape operations and improve unit economics.
Background and business scope
Founded in 2016 by Varun Dua and Ruchi Deepak, Acko began as an online auto insurer and has since expanded into health and corporate insurance. The company reports having served more than 78 million customers and issued over one billion policies, positioning itself among India’s major digital insurers.
AI-led restructuring
Acko describes the job cuts as part of a planned transition to an AI-driven operating model rather than a pure cost-cutting exercise. The company intends to deploy AI across claims, underwriting, marketing and customer support to reduce manual work and speed up processes.
Some capabilities are already live: AI-enabled systems are used for quick settlements on minor vehicle claims. The firm expects further automation to change skill requirements and reduce the need for certain roles.
Alongside the restructuring, Chief Marketing Officer Ashish Mishra has resigned after more than five years. Nitin Khanna, an internal executive with several years at the company, will assume the marketing responsibilities.
Financials and IPO ambitions
Acko’s recent financials show improvement. In FY25, revenue rose about 35% to ₹2,836.8 crore, while losses narrowed by roughly 57% to ₹424.4 crore. The company has trimmed employee and marketing expenses and is targeting profitability within 12–18 months.
The insurer plans to file for an IPO in FY27 and aims to raise $300–$400 million. Backed by investors such as Amazon and Accel, Acko faces competition from established players including Go Digit and Policybazaar. Management says the AI focus and tighter cost control are central to building a stronger, more profitable business before going public.
