The corporate raised its first exterior funding spherical final 12 months at a valuation of $870 Mn
It has raised about $200 Mn until date from A91 Companions, Faering Capital, TVS Capital and others
Digit Insurance coverage claims to have famous a 31.9% progress fee within the final 9 months
Bengaluru-based insurtech startup Digit Insurance coverage has change into the primary Indian startup to enter the unicorn membership in 2021, after elevating INR 135 Cr ($18 Mn) from present buyers at a valuation of $1.9 Bn. It has raised the funding as progress capital to satisfy the solvency margin requirement, following a 31.9% progress within the final 9 months.
Digit Insurance coverage has raised about $200 Mn until date from marquee buyers A91 Companions, Faering Capital and TVS Capital, which personal about 11% stake within the firm. It raised its first exterior funding spherical final January at a post-money valuation of about $870 Mn. The corporate had raised $84 Mn (INR 614 Cr at present conversion fee) as part of this spherical, through which Indian cricketer Virat Kohli and Bollywood actor Anushka Sharma infused about $340K (INR 2.5 Cr).
Earlier than this, the corporate relied on an inner capital infusion from Kamesh Goyal and Prem Watsa’s Fairfax Holdings, the founders of the corporate. The promoters have invested greater than $142 Mn in Digit Insurance coverage in 2017 and 2018, and personal about 88% stake within the firm. “Our technique was to simplify merchandise and course of and again it up with good service. That is working for us to realize progress,” Goyal defined.
Based in 2016, Digit Insurance coverage is a tech-driven basic insurance coverage firm that provides customised insurance policies on well being, auto, journey, smartphones, industrial properties akin to shops and vacation houses. It expanded its enterprise through the pandemic by providing new merchandise like mounted profit cowl for Covid-19 beneath Insurance coverage Regulatory and Improvement Authority’s (IRDAI) sandbox initiative.
The corporate claims that it was about to succeed in out to greater than 20 Lakh Indian via their Digit Group Sickness Insurance coverage product, which provided safety in opposition to Covid-19 and seven Vector-borne illnesses like dengue, malaria, filariasis, ala azar, chikungunya, Japanese encephalitis and the zika virus.
In response to an IBEF report, the Indian insurance coverage trade was anticipated to succeed in $280 Bn by the top of 2020 and develop at a compound annual progress fee (CAGR) of 12-15% over the following three to 5 years. The market is predicted to develop because the Indian authorities pushes for insurance coverage penetration and proliferation of insurance coverage schemes. In response to BlackSoil’s cofounder and director Ankur Bansal, the insurtech can be a favourite amongst buyers in 2021 because the phase is predicted to develop.