Digit Insurance, a Bengaluru based insurance startup has become the breakout stars among startups in 2021. After its latest round of funding, the total valuation of the company has crossed $1.9 Billion.
Founded in 2017 by Insurance Veteran Kamesh Goyal, Digit Insurance is an InsurTech platform that aims to make it simpler for users to obtain insurance coverage. It has plans and products that cover health, property, travel and motor insurance in its portfolio. The firm is 100% cloud-based and offers simplified processes for its customers.
Digit Insurance – What’s On Offer!
The insurance sector is riddled with companies and options that utilize and enforce complicated contracts with almost indecipherable wording and literature. This has diminished the power of the client, as most of them cannot even read the fine print properly. Digit, however, aims to keep it simple in this department.
Digit Insurance offers many features and advantages that make it simpler for customers to understand and purchase products that they want. From Vehicle and Property insurance to Health insurance options, they offer contracts with no hidden clauses and jargon-free documentation. The capability to buy and claim paperless, options across all avenues, smartphone-enabled self-inspection and audio claims are also some of the attractions of the platform.
Robust Growth Of Digit Insurance
Since its inception, Digit has consistently grown over the years. The company claims to have served over 15 Million users since 2017. Even in FY2021, the year of Covid-19, Digit has reported a growth of 31.9%, earning a total of $186 Million in premiums. This is during a time when the entire insurance industry has grown only 0.1% and showcases the potential as well as the popularity of the company.
Digit Insurance is backed by Canadian investment company Fairfax, headed by Canadian NRI Billionaire Prem Wasta. Since 2018, the Canadian holdings firm has poured in over 500 crores INR in multiple rounds of investment. Digit is one of the leading startups in its sector that has amassed such an investment from an established foreign entity like Fairfax.
The company has also raised INR 135 Crore in its latest round of investment, mainly from 3 Indian investors. This investment by A91 Partners, Faering Capital and TVS Capital has allowed the company to reach a valuation of $1.9 Billion, becoming the first Unicorn of 2021.
Digit Insurance during Covid-19
The pandemic has hit every sector hard, and the insurance sector is also going through a bad phase. Though health insurance subscriptions have increased, claims are high and other insurance products have lesser demand due to the financial implications of the pandemic. However, Digit Insurance has kept its momentum, turning profits for all the first 3 quarters of FY2021. They also released a coronavirus insurance plan, making them the first to do so.
In an industry with many established players, Digit Insurance gas captured a good fraction of the market share and continues to grow as a disruptive force. Reaching Unicorn status, that too in a pandemic year is no small feat. This alone showcases its potential, and the firm is looking to grow even beyond in the future.