Startup Digit Insurance is now valued at $3.5 billion after raising $200 million from existing and new investors, in one of the biggest funding rounds in the insurance sector. The existing investor Faering Capital, along with new investors Sequoia Capital India, IIFL Alternate Asset Managers, among others, are participating in the fundraise, which is subject to approval from the Insurance Regulatory and Development Authority (IRDAI).
Bengaluru-headquartered Digit Insurance, which offers health, car, bike, and travel insurance services, saw smaller funding round in January 2021, when it was valued at $1.9 billion. With the completion of the latest funding round, the company's valuation will almost double to $3.5 billion.
''.....This is a validation that we are on the right track....We will contribute to the financial security of fellow Indians in a very small way,'' Mr. Kamesh Goyal, Founder, and Chairman, Digit Insurance told NDTV.
The investors of the Fairfax-backed insurance company also include A91 Partners, TVS Capital Funds, Indian Cricket Team Captain (Men's) Virat Kohli, and the employees of Digit Insurance.
Digit Insurance registered Rs 3,243 crore in gross premiums in the financial year 2020-2021, up 44 per cent from the previous fiscal's mark. The company makes use of technology to simplify processes for customers, such as smartphone-enabled self-inspection and audio claims.
In its statement, Digit Insurance said that over the past one year during the pandemic, it has provided COVID-related insurance to almost 3.6 million employees across 32,000 corporates, under corporate health insurance.
Digit claims that since its inception, it has provided insurance to more than 2 crore customers and has processed over 4 lakh claims.