Digital insurtech firm Acko has trimmed around 5% of its workforce, with nearly 60 employees impacted, as part of an internal restructuring linked to the integration of artificial intelligence, according to a report by Mint .
The affected employees are expected to remain with the company until the end of June. An Acko spokesperson has confirmed the development to Entrackr.
The move is part of a shift in how the company is organising teams, with a sharper focus on AI-led workflows, evolving performance metrics, and new skill requirements aligned with its next phase of growth, rather than a cost rationalisation effort.
The layoffs come alongside the exit of chief marketing officer Ashish Mishra, who is currently serving his notice period after nearly five and a half years at the company. He is likely to be succeeded by Nitin Khanna, an internal leader with over seven years of experience at Acko.
The company, which had around 1,200 employees as of March 2026, is seeing certain roles become redundant as part of this transition. This is Acko's second round of layoffs, following job cuts during the Covid-19 pandemic.
The development comes as Acko prepares for a proposed $300-400 million IPO in FY27. Founded in 2016 by Varun Dua and Ruchi Deepak, the company has raised over $458 million to date, according to TheKredible.
Acko's revenue from operations rose to Rs 2,837 crore in FY25 from Rs 2,106 crore in FY24, while losses narrowed 37% to Rs 424 crore.
In the same space, rival Digit Insurance reported a 4.5% dip in revenue to Rs 2,142 crore in Q3 FY26, even as profit rose 18% to Rs 140 crore. Meanwhile, Navi has recently entered motor insurance, intensifying competition.