Digital general insurance startup Digit Insurance has raised $84 million in its first external funding round from three growth equity investors – A91 Partners, Faering Capital, and TVS Capital.
Post investment, the company has reached a valuation of about $870 million. Collectively, the trio will have less than 10% equity after this fund infusion. Significantly, 72 Digit employees have also poured in around $4.34 million in the round.
The Bengaluru-based company would be deploying this equity capital majorly for meeting the Insurance Regulatory and Development Authority of India’s (IRDAI) guidelines, said an Economic Times report.
The fresh investment for the firm has come after seven months. In June 2019, it had raised $50 million worth internal round led by Fairfax Financial Holdings.
With this round, the total funding raised by Digit Insurance has crossed $224 million. It’s one of the largest funded startups in the digital general insurance space.
Incepted in 2016 by Kamesh Goyal, Digit Insurance tries to simplify the insurance process and includes products such as motor, home, travel, mobile, health, employee health, and port health policy among others under its portfolio.
Additionally, the company has also bolstered its operations through direct channel partners, including e-commerce companies such as Amazon and Flipkart.
Within its two years of operations, Digit claims to have served more than 5 million customers and has achieved close to $300 million of annualized premium. It also holds a 1.2% market share of the total general insurance industry in the country.
Besides Acko, Digit Insurance indirectly competes with Coverfox and PolicyBazaar.