Digit Insurance, a Bengaluru-based general insurance company offering health, car, bike, and travel insurance, is raising up to $200 million from existing investor Faering Capital and new investors Sequoia Capital India, IIFL Alternate Asset Managers, and a few others in its latest round of funding, subject to IRDAI approval.
The company claims this to be one of the biggest funding rounds in the Indian insurance industry bringing the total capital infused into Digit Insurance up to $442 million, valuing it at $3.5 billion. Digit saw a smaller round in January 2021, wherein it was valued at $1.9 billion.
Digit began its journey in October 2017 and was the first Indian Unicorn of 2021, this feat achieved in less than four years. It booked profit under IFRS accounting for the FY 2020-21.
Kamesh Goyal, Chairman and Founder, Digit Insurance
Despite the overall industry growing around 5 percent last year due to the pandemic, Digit claims that it grew by 44 percent, with a premium of Rs 3,243 crore (April ’20 – March ’21).
Digit has two crore+ customers and has processed more than four lakh claims.
Digit has achieved GWP (Gross Written Premium) growth of 70 percent during April-May 2021, versus 17 percent for the general insurance industry.
Kamesh Goyal, Chairman and Founder, Digit Insurance, said,
“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 and 4.9 on Facebook based on 29,000 reviews, and fast claim settlements.”
Prem Watsa, Chairman, Fairfax Financial holdings, the first investor in Digit Insurance, added, “It was a difficult year for economies the world over but I am glad to see Digit continuing to stick to its mission of simplicity and growing ahead of the industry. Their relevant products, tech-enabled, simple processes and customer-centric approach sets them apart.”
Among Digit’s investors are TVS Capital Funds, A91 Partners, Indian Cricket Team Captain (Men’s) Virat Kohli, and the employees of Digit.
The Fairfax-backed insurance company 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 company uses technology to simplify processes for their customers like smartphone-enabled self-inspection and audio claims. They are 100 percent on cloud and have launched several 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.