Cloud-based general insurance company Digit Insurance announced Friday that it was valued at $ 1.9 billion after a $ 18.4 million (Rs 135 billion) financing round expected later this month Month will be completed.
The Bengaluru-based company will be the first unicorn to arrive from India in 2021. Startups with a private value of $ 1 billion or more are known as unicorns.
Read: Unicorn sightings in a pandemic year
The company is raising its latest round of capital from existing investors A91 Partners, TVS Capital and Faering Capital, Digit Insurance founder and chairman Kamesh Goyal told TechCircle. The round is expected to be completed by the end of the month.
“The funds raised will be used to further expand the business, invest in processes and technologies and meet regulatory solvency requirements,” said Goyal.
The company also counts Prem Watsa’s Fairfax India Holdings among its investors.
At the beginning of February 2020, cricketer Virat Kohli and actor Anushka Sharma took part in the startup’s first external financing round and invested Rs 2 crore and Rs 50 lakh respectively. Digit Insurance had raised a total of $ 84.85 million (Rs. 606.7 billion in exchange rates at the time of financing) from a group of investors including A91 Partners, TVS Capital, and Faering Capital, which each raised $ 200 billion. Rupees invested.
After this round of funding, Digit was valued at $ 765 million.
“In a year that was almost like a recession for most companies and in which the insurance industry itself grew by 0.1% (growth of the general insurer without independent health and specialty insurance), Digit grew by 31.9% and earned one $ 186 million bonus (April 20). Dec. 20) and claims to have 1.5 million customers since its inception, “the company said in a statement.
The company said it had made profits in all three quarters of fiscal year 20-21 in accordance with IFRS standards within three years.
In terms of total financial performance, Digit Insurance operating revenue increased 149.4% to Rs 1,247 billion for the fiscal year ended March 2020 (FY 19-20). This is evident from the information provided by VCCEdge. It managed to cut losses in FY 20 by 30% to Rs 193.1 billion from Rs 279 billion in Fiscal 19.
Digit Insurance, based in Bengaluru, was founded by Goyal in 2017. Prior to founding Digit, the insurance industry veteran ran H8 Asset Management & US life insurance company for Allianz Asset Management.
This article has been changed from the original to take into account that Faering Capital, A91 Partners and TVS Capital invested equal amounts in the company’s funding round in February 2020 and the round was not led by an investor.