MUMBAI, April 27 (Reuters) - India's Acko Insurance is

targeting a valuation of between $2 billion and $2.5 billion in

its planned initial public offering and is eyeing a listing in

early 2027, two people familiar with the matter said.

Backed by investors including General Atlantic, Accel,

Amazon.com ( AMZN ) and the Canada Pension Plan Investment Board

(CPPIB), Acko provides insurance products including motor,

health and travel insurance.

Acko has appointed Morgan Stanley ( MS ), ICICI Securities and

Kotak Mahindra Capital as the bankers to manage the proposed

listing, the sources said, requesting anonymity as they are not

authorised to talk to media.

The insurer could seek to raise funds in the range of $300

million and $500 million, one of the sources said.

Email requests for comments sent to Acko, Morgan Stanley ( MS ),

ICICI Securities and Kotak Mahindra Capital were not immediately

answered.

The company is expected to confidentially file its draft IPO

papers with India's markets regulator in the next two to three

months, the sources said.

The confidential route allows companies to submit draft IPO

papers to SEBI for feedback without making the details public,

giving them greater flexibility on timing and disclosure.

The offer is expected to be a mix of fresh shares and

secondary sales by existing investors, the sources said.

India was the world's second-largest IPO market in 2025 but

sentiment towards IPOs has weakened this ​year amid the conflict

in the Middle East. Still, big-ticket IPOs ​such as Jio

Platforms and National Stock Exchange are in ⁠the offing this

year.

Founded in 2016, Acko has focused on digitising insurance

purchase and has relied on partnerships with online platforms

and mobility companies to scale.

Insurance penetration in India, as measured by total

insurance premium underwritten in a year, stood at about 3.7% of

GDP in 2024, well below global averages, leaving room for

growth.

(Reporting by Ashwin Manikandan and Vibhuti Sharma in Mumbai;

Editing by Muralikumar Anantharaman)