Digit Insurance, a general insurance startup based out in Bangalore has raised over Rs 300 crores in the second round of funding from Fairfax Holdings. The company aims to expand their footprints crosswise the country to lesser known towns and enhance their technology platforms as well.
In keeping with the assertion launched by the corporate, Canadian billionaire Prem Watsa’s Fairfax Holdings has invested the second spherical of capital ($45 million) in Digit Infoworks, the dad or mum firm for Digit Insurance coverage, of which a major a part of the funding ($44 million) is given to Digit Insurance coverage. This is Fairfax’s secondary investment owned by Prem Watsa which has put in Rs. 350 crore in the primary round of investment.
Fairfax is the largest shareholder of Digit. Digit Insurance is a subsidiary of Go Digit Info works which has raised the funds, while it has channelized Rs 310 crore into Digit Insurance; Rs 5 crore has been invested in the parent company.
The second round of funding is the largest for a startup general insurer and brings the total funding into Digit to about Rs 650 crore. The company had launched operations with a paid up capital of Rs 350 crore.
“We are looking at major expansion opportunities for our product line as well as our locations of operation and staff strength, looking at the growth path we felt the need for this second round of funding,”said Kamesh Goyal, the chief executive officer as well as another major shareholder after Fairfax in Digit Insurance.
Loaded with the entire funds of Rs. 665 crore, Digit has aimed to make buying and claiming insurance products smooth, simple and digitized completely for Indian consumers. The company turns up with innovative products similar to insurance against flight delays, jewellery insurance and many others.
Digit is selling approximately 6000 policies per day and it has also tied up with the corporate entities like Amazon, , Flipkart, Sterling Resorts, SOTC, Policy Bazaar, Tanishq and 1500 other retail agents all over India. Digit’s strategy is to distribute through partnerships.
When questioned about the same, Mr., Goyal said, “Among the policies sold the major chunk in terms of the number is from travel segment, we also have motor insurance policies whose premium amount adds up to become larger than other categories”. Added to that “Going ahead we will stress on project insurance with an average tenure between three to five years.” aforesaid Goyal.
The company is also planning to launch in new lines of business those include engineering and health. The company has set a goal of expanding their business into 28 different cities in a span of 3 months. The business plan of Digit Insurance is to increase the retention of the property. The company is also investing in technology. Mr. Goyal earlier headed Bajaj Allianz’s insurance operations in India and also had a regional role in Allianz before promoting Digit.
Within the final week of June this year, ETechAces Advertising & Consulting Pvt Ltd, which folks not solely the insurance coverage comparability market, but in addition, its lending counterpart PaisaBazaar mentioned it had raised over $200 million in a Collection F spherical led by SoftBank Imaginative and prescient Fund. This made PolicyBazaar the primary insurance coverage platform to make it to the Indian Unicorn membership.