- Valuation almost doubled in 6 months
- Achieved this in less than 4 years of operations
- One of the biggest rounds of funding in insurance
- Led by existing PE investor Faering Capital and new investors like Sequoia Capital India, IIFL Alternate Asset Managers and a few others.
Bengaluru, 1 July 2021: Digit Insurance, a general insurance company offering health, car, bike, and travel insurance, is raising $200M with existing investor Faering Capital and new investors like Sequoia Capital India, IIFL Alternate Asset Managers and a few others, in their latest round of funding, subject to IRDAI approval. This is one of the biggest funding rounds in the Indian insurance industry. This would bring the total capital infused into Digit Insurance to $442M.
Digit began its journey in October 2017 and was the 1st Indian Unicorn of 2021, this feat achieved in less than 4 years. It booked profit under IFRS accounting for the FY 2020-21. Digit Insurance is now valued at $3.5B, almost double what it was in January 2021.
Despite the overall industry growing around 5% last year due to the pandemic, Digit grew by 44%*, with a premium of INR 3,243 crore (April ’20 – March ’21). Digit has 2 crore+ customers and has processed more than 4 lakh claims**.
The new financial year has also started with a robust GWP growth for Digit, 70% during April-May 2021, while the industry grew by 17%.
Kamesh Goyal, Chairman & Founder, Digit Insurance, said, “We are humbled by our investors’ confidence. We will continue to focus on increasing insurance penetration and simplifying processes through technology. Customer service remains our key focus which is evidenced by our high customer rating, 4.7 on Google & 4.9 on Facebook*** based on 29,000 reviews, and fast claim settlements.”
Amongst Digit’s investors are Canadian billionaire, Prem Watsa-backed Fairfax Financial Holdings Limited, Faering Capital, TVS Capital Funds, A91 Partners, Indian men's cricket team captain Virat Kohli and employees of Digit.
The Fairfax-backed insurance company, headquartered in Bengaluru, is founded by insurance veteran Kamesh Goyal, who, with over 32+ years’ experience, has worked in both General Insurance and Life Insurance spaces. Before founding Digit, he was the Head of H8- Asset Management & US life insurance Company for Allianz Asset Management.
The young Unicorn uses technology to simplify processes for their customers, like smartphone-enabled self-inspection and audio claims. They are 100% on cloud and have launched several innovative offerings relevant to the ever-emerging needs of customers.
“The pandemic and repeated natural calamities have drawn people’s attention towards the importance of insurance. We have covered more than 36 lakh lives over 32,000+ corporates**** under corporate health insurance alone. Digit will continue enriching the portfolio focussing on providing people-benefitting products.”, Kamesh added.
- The above funding is subject to IRDAI approval.
- Conversion rate USD to INR: INR 74.23= 1 USD
* IRDAI monthly business figures, segment-wise report I Industry Gross Direct Premium, Digit: Gross Written Premium
** Since inception
*** As of April 2021
**** From inception to June 2021