The latest startup to receive funding is Digit Insurance.
The news of funding of startups has been coming now since the economy is restoring back from the deadly effects of the famous coronavirus. The economy had stagnated and was not operating since the world was in lockdown and there was nothing happening economically. People were stuck inside their homes and it felt as if the time had paused. There was so much uncertainty in the world with a constant fear that what will happen and whatnot.
The Digit Insurance startup as announced on July 2, 2021, has received funding of USD 200 million. The participants of the round of funding were existing investors Faering Capital and new investors Sequoia Capital India and IIFL Alternate Asset Managers. Post this round, the value of the company has risen to USD 3.5 billion. This value of the company will almost be double its existing valuation in less than six months.
In January, the value of the Digit Insurance company was USD 1.9 billion after the investors like Faering Capital, TVS Capital, and A91 partners invested USD 18.4 million. The funds raised will be used to increase the solvency requirement of 150% of insurers liability which has been made mandatory by the regulators. The funds will also be used in growth and working when the third wave of COVID arises.
This news of the funding has come when its competitor Acko is at the last stage of funding of over USD 200 million, which will value Acko over USD 1 billion. After the latest funding, the total funds raised by Digit Insurance will be USD 442 million. Founded in 2017 by Kamesh Goyal, Digit Insurance believes that insurance is meant to protect what one loves. It is under the ideology to make insurance simple.
The digital tools offered by the startup are SME buddy which acts as a consultant to help customers pick the right amount of insurance, Home Loan Calculator which helps in the calculation of the EMI for the home loan, Insurance Dictionary which helps in simplification of the complicated insurance terms, and COVID 19 symptoms checker which helps in checking of the symptoms of the COVID.
The platform is engaged in providing insurance of various types like motor insurance, fire insurance, burglary insurance, bus insurance, building insurance, heavy vehicles insurance. The startup is backed by Firefax India Holdings which is a subsidiary of Fairfax Financial Holdings, a Canada-based insurance firm.
The company has registered a gross premium of Rs 3243 crore over the last three years and claims to have increased at 44% in the year 2020-2021. The company has more than 2 lakh customers and has said to settle around 4 lakh claims since its formation.
The chairman and the founder of the Bangalore-based company Kamesh Goyal said that the startup is very much pleased to see the confidence portrayed by the existing investors and the new investors. The startup aims to continue working on increasing its customer reach and is also working on the simplification of the process through a technological platform.
The Chairman of Fairfax Financial Holdings, Prem Watsa made a statement saying that the pandemic was a difficult time for the economies all over the world, but he is happy to see how Digit Insurance is on its mission to simplify the insurance process and move ahead and capture more market. The distinguishing feature of the startup is its relevant products, technology ability, simple process, and focusing on the customers.
This funding round is one of the largest in the insurance industry of the country and will bring the startup to the list of most valued insurtech ventures in South Asia.
The startup definitely has the potential and we hope that its future is bright.
Edited by Tanish Sachdev