BENGALURU/MUMBAI: Digital insure-tech firm Acko has let go of about 60 employees, roughly 5% of its workforce, as it undergoes a structural realignment with a greater focus on integrating artificial intelligence (AI) into its operations, multiple people familiar with the matter said. Affected employees are expected to remain with the company until the end of June, the people added.
The job cuts come alongside the departure of chief marketing officer Ashish Mishra, who spent nearly five-and-a-half years at Acko after joining in August 2020. Mishra is currently serving his notice period and is expected to be succeeded by Nitin Khanna, who has spent over seven years at the company across marketing roles, the people added.
A spokesperson for Acko confirmed the developments to Mint.
The company is in the middle of a transition that has led to job cuts across roles and functions. “AI has fundamentally redesigned how the company will operate. So there are certain roles which worked in the previous version of the organisation that don’t exist anymore,” one of the people cited above said.
Acko’s total employee count stood at around 1,200 as of March 2026, according to company officials.
This marks the company’s second round of layoffs. During the covid-19 pandemic, Acko had let go of 45–50 employees from its then 480–500-strong workforce, as it sought to cut costs and extend its runway, Entrackr reported at the time.
Acko’s push to be AI-ready comes as it prepares for a $300–400 million targeted in FY27. Mint reported in December that the company is in early discussions with bankers to gauge market interest. The proposed issue is expected to include a mix of fresh capital and secondary share sales by existing investors.
If it goes as planned, Acko will join the growing list of companies including Meesho, Pine Labs, , PhysicsWallah, Ather Energy, Bluestone, Urban Company and Lenskart, that went public in the last year.
Founded in 2016 by Varun Dua and Ruchi Deepak, Acko has so far raised over $450 million from investors including Amazon.com Inc., Accel, Elevation Capital, Munich Re Ventures, Catamaran Ventures, RPS Ventures, Intact Ventures and SAIF Partners, as well as M.S. Dhoni (through his family office), co-founder Binny Bansal and former CaratLane chief executive Mithun Sacheti.
Over the past nine years, the insurer claims to have served more than 78 million customers and issued over a billion policies. It started with auto insurance in 2016 and has since expanded into health insurance, aiming to cover the full customer journey—from medical tests to hospital claims. As part of that push, it acquired Better Capital-backed chronic-care startup OneCare in 2024 and has been expanding its hospital and clinic network.
Its group health insurance product has signed up over 200 companies, including Swiggy, Razorpay and Cred. In FY25, Acko trimmed its consolidated net loss to ₹424 crore from ₹667 crore a year earlier, while operating revenue rose to ₹2,836 crore from ₹2,106 crore.
Acko competes with legacy insurers such as Tata AIG and Bajaj Allianz, as well as digital-first players including Go Digit Insurance, InsuranceDekho, CarDekho, Spinny and PolicyBazaar.