Insur-tech startup Digit Insurance recently announced that it will raise $84mn in external funding. The investment will be made by growth equity investors A91 Partners, Faering Capital and TVS Capital. Digit has sought approval from the Insurance Regulatory and Development Authority of India to raise the sum.
This is the first time the Bangalore-based startup is raising funding from external sources. Prior to this, the company was raising funds from Canadian billionaire Prem Watsa’s Fairfax Holdings. Earlier in July 2018, the startup had raised $45mn from Fairfax Holdings. With this investment, the startup’s combined funding will rise to $224mn.
The startup was founded in 2016 by Kamesh Goyal to make insurance simple. The company started its operations in 2017 and within just two years Digit claims to have served more than 5mn customers and achieved about $300mn of annualizing premium.
Speaking to the media, Co-Founder and Managing Director Faering Capital Aditya Prakash said, “Our investment in Digit is based on our thesis to back market-leading companies pursuing large opportunities in financial services in India. Digit is uniquely poised to become a dominant player in the general insurance industry, and we are excited to offer our expertise and partner with Kamesh and his team in their exciting journey of delighting customers with innovative yet, simple products and services.”
Chairman of Digit Kamesh Goyal said, “We are glad that we have earned the trust of five million customers in just two years of operations. The confidence that our investors and our employees have shown in our mission of making insurance simple, is very heartening. And, this round of funding will further help us in doing that. Happy to be associated with our new investors in our journey to build India’s simplest insurance company!”
Gautam Mago, General Partner, A91 Partners added, “A91 seeks to partner with founders who are building enduring businesses for tomorrow’s India. We are thrilled to back Kamesh and the team at Digit, who are building a new age insurance company in a thoughtful manner with an admirable mix of simplicity and technology.”
Digit currently offers a portfolio of products across motor, travel, property, and health insurance.
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