Exclusive: Digit set to raise $80 Mn, becomes latest to enter unicorn club

General insurance provider Digit Insurance has become the latest entrant to the unicorn club with a fresh infusion of funds from existing investors. 

The Bengaluru-based company kicked off a new round in which the company allotted 78.5 lakh equity shares at an issue price of Rs 172 per share to raise Rs 135 crore from A91 Partners, TVS Shriram Growth Fund and Faering Capital who have invested Rs 45 crore each, regulatory filings show. 

According to three Entrackr’s sources, Digit is also in an advanced stage to raise $80 million in the fresh round from existing investors.

“Existing backers along with a new investor are set to lead a new round,” said one of the sources on condition of anonymity. This will be the second external round for Digit, which raised $84 million from A91 Partners, Faering Capital, and TVS Capital in January last year. 

Entrackr had reached out to Kamesh Goyal, founder and CEO of Digit on Thursday, but he denied any new investment.

Fintrackr couldn’t ascertain Digit’s exact valuation in the fresh round. However, a Times of India report pegged its valuation close to $1.9 billion. It’s worth noting that it was valued at $870 million when it raised its first external round in January 2020.

Besides motor and health, Digit focuses on small and medium businesses with products such as shop, property and fire insurance. The fresh round will help the company to bolster its operation in this segment. Since its inception in 2015, Digit has raised around Rs 665 crore in two internal rounds from Fairfax Holdings, which is also the largest shareholder in the company. 

The company has also strengthened its operations through direct channel partners, including Amazon. Flipkart, Paytm, Policybazaar, Cleartrip and thousands of retail agents across India.

Digit competes directly with Acko and to some extent with Coverfox and PolicyBazaar. While PolicyBazaar had become a member of the unicorn club in 2018, Acko closed its $60 million Series D funding round led by Munich Re Ventures in September, last year. The Binny Bansal and Amazon-backed company was estimated to have valued at around $500 million during its last financing round.