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Life is risky and uncertain. We don't know what is waiting for us. One may face an untimely death or lose a limb anytime. Accidents do not appear after knocking on your front door, we just meet with it unexpectedly.
Digit Insurance is a security provider to all the insecurities that may occur in one's life. It has got various sorts of insurance policies such as Bike Insurance, Commercial Vehicle Policy, Car Insurance Policy, Health and Travel Insurance Policies as well. Read the Digit Insurance success story below.
Digit Insurance - Company Highlights
| Company Name | Digit Insurance |
|---|---|
| Headquarters | Bengaluru, Karnataka, India |
| Sector | Finance, Financial Services and Insurance |
| Founder | Kamesh Goyal |
| Founded | 2017 |
| Valuation | $3.47 Billion (as of August 2021) |
| Website | godigit.com |
Digit Insurance - Latest News
Digit Insurance - Joins Unicorn Club with $1.9B Valuation
Digit Insurance - About
Digit Insurance - Startup Story
Digit Insurance - Founder and Team
Digit Insurance - Logo
Digit Insurance - Business Model
Digit Insurance - Revenue Model
Digit Insurance - Funding and Investors
Digit Insurance - Growth
Digit Insurance - Competitors
Digit Insurance - Future Plans
Digit Insurance - Latest News
July 2, 2021 - Digit Insurance is all set to raise an amount of up to $200 million via its existing investor Faering Capital and new investors, Sequoia Capital India, IIFL Alternate Asset Managers, and a few others. The upcoming funding round of Digit, which was initially funded by Virat Kohli, is believed to be one of the biggest funding rounds in the history of the Indian insurance industry. This new round will increase the total valuation of the company to $3.5 billion.
January 15, 2021 - Digit Insurance turned unicorn. With a capital of Rs 135 crore, pumped in by the existing investors of the company, Digit Insurance became the first startup that joined the unicorn club in 2021.
Digit Insurance - Joins Unicorn Club with $1.9B Valuation
Digit Insurance becomes the 1st Indian Startup in 2021 to join the Unicorn Club, following its latest undisclosed investment round.
It also launched a novel COVID-19 product, a Fixed benefit cover for COVID-19. They have been able to reach out to over 20 lakh Indian lives through their Digit Group Illness Insurance product.
Digit Insurance - About
Digit Insurance is a Bengaluru based general insurance and financial services company. Its mission is to make insurance simple for the common people. It also provides home and shop insurances.
Digit Insurance - Startup Story
Previously bread had to be sliced from loaves. It wasn't simpler like today's slices. People find insurance to be like those unsliced loaves. Customers also don't understand which plan is appropriate for whom. The company believes that this thinking can be changed. With this Digit Insurance started making insurance simple with an aim to go back to the basics and simpler transparent insurance solutions. Simple meant no twisted rules. The company needed a simple name and hence it found the name digit to be perfect and appropriate for them.
Digit Insurance - Founder and Team
Kamesh Goyal is the Founder and the chairman of the company Digit Insurance. He also worked at Allianz Insurance as the Head of Asset Management and Group Planning and Controlling. He was also the Regional Chief Executive Officer there. He also served as the Chief Operating and General Officer. He began his career as a manager at KPMG, India. He pursued B.A. LLB and also completed his masters in business administration from Delhi University.
Digit Insurance - Logo
Digit Insurance - Business Model
The Digit Insurance Business Model aims at introducing various new products and services to disrupt the Indian general insurance sector. It holds a general insurance license which allows the company to sell health insurance products. Car and home insurances are common but Digital Insurance provides Jewellery and Mobile Insurances as well. The company is redefining the insurance industry by working digitally. Its business strategy is to create beneficial partnerships with various companies.
Piyush Mishra
Digit Insurance - Revenue Model
Insurance companies earn through their various insurance plans. Digit Insurance was awarded as Asia's General Insurance Company of the Year 2019-2020. In 2019, Digit Insurance was also India's Top Startup on LinkedIn. It has got a 4.9 Facebook rating which means about 92% of the customers like the company. All the insurance sectors are having various parts within themselves. The Digit Insurance revenue is generated from the premiums. For the Two Wheeler Insurance, Premium starts from INR 786. Here customers are treated like VIPs. In the case of a Commercial Vehicle Insurance Policy, if the vehicle meets any damage or an accident, the company provides 80% advance payment to the garage of the customer's choice only if there was an absence of cashless garages nearby.
Digit Insurance - Funding and Investors
Digit Insurance funding has seen it rise to unicorn status in 2021. The company has raised more than $179 million in funding over the 3 funding rounds.
According to the latest PR released by Digit Insurance, dated July 2, 2021, Founder and Chairman of the company, Kamesh Goyal has announced Digit's new fundraising round where the company would raise up to $200 million. The investments of this new round would be led by Sequoia Capital India, IIFL Alternate Asset Managers, and existing investor Faering Capital among others, as per the updates. This latest round would sum up the total capital infused into the company to $442M and is believed to be one of the biggest funding rounds in the history of the Indian insurance industry. With this fundraising round, Digit Insurance will be valued at $3.5B.
Digit Insurance's last fundraise of $200 million was yet to be filed by the Ministry of Corporate when the company again raised an amount of ($16.30 mn)Rs 121 crores in a round led by TVS Growth Fund and other high net worth individuals, according to the reports dated August 26, 2021. To raise the sum, Digit has reportedly passed a special resolution of allotting a total of 38,47,427 equity shares at an issue price of Rs 314 per share, according to the recent regulatory fillings. The current valuation of the company is estimated at $3.47 bn, as of August 2021.
| Date | Transaction Name | Money Raised | Lead Investors |
|---|---|---|---|
| July 2021 | - | $200 million | Sequoia Capital India, IIFL Alternate Asset Managers, Faering Capital and more |
| January 2021 | - | $18 million | |
| January 21, 2020 | Venture Round | $84 million | A91 Partners, Faering Capital, TVS Capital Funds |
| June 5, 2019 | Venture Round | $50 million | Fairfax Financial Holdings |
| July 3, 2018 | Venture Round | $45 million | Fairfax Financial Holdings |
Digit Insurance is funded by 4 lead investors. IIFL Asset Management and Faering Capital are the most recent investors of the firm.
Digit Insurance - Growth
Digit Insurance grew by 31.9%, earning a premium of $186 million (April’20-Dec’20) and claims to have 1.5 crore customers since inception. After completing the latest round of July 2021, where the company has decided to raise $200 million, Digit Insurance would be raising a total of $442 million.
In 2020, the company expanded its business by 30%. Two major products helped the company drive growth. One is Covid health insurance and the other one is fire insurance. The company witnessed strong growth in terms of its premium collection due to the above-mentioned factors. Reports say that the vehicle insurance sector is lacking growth but in 2021 things are going to turn normal and the vehicle insurance sector would also experience growth like the other sectors. The industry is suffering due to the Covid situation and also there is a massive drop in the interest rates but the fear in people's mind made them buy Covid health insurances and help businesses view growth.
The coronavirus pandemic has had its repercussions echoing on most of the major industries including the insurance sector, which saw a growth of only 5% last year. Digit Insurance, however, has exhibited a promising growth of 44% despite the pandemic woes. The company boasts of serving over 2 crore+ customers and has claimed to process more than 4 lakh claims.
Rishabh Rathi
Digit Insurance - Competitors
The top competitors of the company are Acko, Coverfox and PolicyBazaar.
- Acko is the top competitor of Digit Insurance. It is a Mumbai based company founded in 2016. It also works in the insurance industry.
- Coverfox is one among the top competitors of Digit Insurance. It was founded in 2013 and is headquartered at Andheri East, Maharashtra, India. It also operates in the insurance sector.
- PolicyBazaar is also a top rival of Digit Insurance. It was founded in 2008 and is headquartered at Gurgaon, Haryana, India. The company competes in the insurance sector.
Purbalee Dutta
Digit Insurance - Future Plans
Mr Vivek Chaturvedi, CMO, said,
“We are once again honoured and delighted to receive this prestigious award title of being the General Insurance Company of the Year. At Digit, our constant endeavour is to deliver the best customer experience with products that really matter to our customers. And this recognition is a validation that we are on the right path of simplicity!”
The company from 2019 to 2020 has 87% of growth in premiums. It has earned massive trust from the customers and is looking forward towards a good customer base along with the 1.4 crores of existing customers.
Frequently Asked Questions - FAQs
Who is the Digit Insurance Founder?
Kamesh Goyal is the Founder of Digit Insurance as well as its chairman.
What insurances does Digit Insurance provide?
Digit Insurance covers insurance policies such as Bike Insurance, Car Insurance Policy, Health and Travel Insurance Policies, Property Insurance, Shop Insurance, Fire Insurance and many more. It also cover COVID related insurances.
What is Digit Insurance valuation?
In January on 2021, Digit Insurance raised its valuation to 1.9 Billion making it the first Unicorn of 2021 in India.
Author: Purbalee Dutta
Source : https://startuptalky.com/digit-insurance-success-story/
Date : 2021-08-26T06:55:00.000Z