Layoffs · Financial Services

Acko cuts 60 staff for AI shift ahead of IPO

By Startup Enthusiast · 20 April 2026

What they do

Acko General Insurance offers digital-first insurance products to consumers and businesses across India

The company is restructuring ~60 employees (5% of its workforce) to adopt AI automation tools

This move supports its planned $300M–$400M IPO in FY27, with the restructuring not being a cost-cutting measure

Acko General Insurance is transitioning approximately 60 employees out of its total workforce of 1,200.
This restructuring represents about 5% of the company's staff as of March 2026.
The layoffs are driven by a structural realignment to adopt AI automation technologies.
Acko states this is not a cost-cutting measure but a strategic shift toward technology.
Affected employees will remain with the company until the end of June 2026.
The company is offering a severance package including 2.5 months notice pay or salary.
Severance also includes 15 days salary per year of service and 8 months of health insurance.
Career transition support is being provided to those leaving the organization.
Some employees may retain their work devices during the transition period.
CMO Ashish Mishra is stepping down after more than five years at the firm.
Nitin Khanna, an internal executive with over seven years at Acko, will succeed him.
The company is preparing for a potential public listing in fiscal year 2027.
Acko aims to raise between $300 million and $400 million through this IPO.
The fundraising will include fresh capital and secondary sales by existing investors.

The restructuring aligns with broader industry trends of tech giants cutting jobs for AI adoption.
Acko has undergone two rounds of layoffs, with the first occurring during the pandemic.
The move coincides with financial improvements, including reduced employee and marketing expenses.
The leadership change signals a shift in marketing strategy alongside operational changes.

Acko operates as a digital-first general insurance provider in India.
It offers various insurance products to individual consumers and business clients.
In FY25, the company reported operating revenue of ₹2,836.8 crore.
This revenue represents growth from ₹2,106 crore in the previous fiscal year.
Acko's net loss narrowed significantly to ₹424.4 crore in FY25.
Employee expenses decreased to ₹334 crore from ₹354 crore in FY24.
Marketing expenditure fell to ₹496 crore from ₹562 crore in FY24.
The company has raised over $458 million in total funding to date.
Founders Varun Dua and Ruchi Deepak established the company in 2016.
FY26 performance figures remain undisclosed as of the report date.