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IPO-bound insurtech unicorn Acko turned profitable in FY26, posting a net profit of ₹43.6 Cr in FY26 compared to a loss of ₹193.4 Cr in FY25.

The insurer’s net earned premium rose 26% YoY to ₹191.8 Cr in FY26 from ₹152.2 Cr in the previous financial year, driven by growth in its insurance business.

Income from investments, however, declined 10.4% YoY to ₹51.2 Cr in FY26 from ₹57.1 Cr in FY25. Within this, profit on sale/redemption of investments jumped 48.3% YoY to ₹8.9 Cr in FY26 from ₹6 Cr a year ago. Meanwhile, interest, dividend and rent income increased 14.2% to ₹42.2 Cr from ₹49.2 Cr in FY25.

Overall, Acko’s total income increased 39.7% to ₹199.5 Cr in FY26 from ₹142.8 Cr in the previous financial year.

Net claims incurred rose 19.2% YoY to ₹127.1 Cr, while operating expenses related to insurance business fell 12.3% to ₹62.3 Cr during the fiscal year.

Acko’s net incurred claims to net earned premium ratio improved to 66.3% in FY26 from 69.95% in the previous financial year.

This comes at a time when Acko is gearing up for its IPO. As part of this, the startup laid off about 5% of its workforce, or around 60 employees, citing increased adoption of AI and automation.

Earlier this year, Acko also said it was moving away from investment-linked insurance products such as ULIPs and endowment plans to focus on “pure protection” offerings.

Founded in 2016 by Varun Dua and Ruchi Deepak, Acko entered the unicorn club in 2021 after raising $255 Mn in its Series D funding round led by General Atlantic and Multiples Private Equity. The startup has raised about $458 Mn to date from investors like Lightspeed, Elevation Capital and Accel.

Last month, the insurtech unicorn appointed ICICI Securities, Morgan Stanley and Kotak Securities as bankers for its proposed IPO.

The startup is targeting a valuation of $2 Bn-$2.5 Bn and is looking to confidentially file its DRHP in H2 2026, with a listing targeted in H1 2027. The public issue is expected to comprise both a fresh issue of shares and an offer-for-sale (OFS) component.

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