Exclusive: Digit Insurance raises fresh funds at $3.47 Bn valuation

General insurance provider Digit Insurance had announced in July that it raised $200 million at a valuation of $3.5 billion. While the details of the transaction are yet to be filed with the Ministry of Corporate Affairs, the company has raised a further  Rs 121 crore from TVS Growth Fund and high net worth individuals.

Digit Insurance has passed a special resolution to allot 38,47,427 equity shares at an issue price of Rs 314 per share to raise the sum, regulatory filings show.

Existing investor TVS Shriram Growth Fund has led the round with an investment of Rs 56 crore. Notable individuals include Kunal Shah, Saujanya Shrivastava ( CBO, MMT), Susheel Tejuja (owner Landmark Insurance brokers), Sachin Pillai (MD & CEO Hinduja Leyland Finance), Anil Arora (CEO Ace Insurance Brokers) also participated in the round.

About 110 other individual investors have also put in money this round, filings show. According to Fintrackr’s estimate, the company has been valued at Rs 26,060 crore or $3.47 billion (post-money) after this fresh tranche. The company was valued at $1.9 billion in January this year when it raised a Rs 135 crore top up from its existing backers. Importantly, the price per share of the company also jumped 82% from Rs 172 to Rs 314.

The company may receive more funds in this round.

Digit offers a portfolio of products across motor, travel, property and health insurance. It was the first startup to turn unicorn in 2021 and since then, two dozen Indian companies have turned into unicorns.

Last month, Digit claimed to have 20 million customers and processed 400,000 claims since its inception in October 2017. In FY21, it also claimed a 44% year-on-year growth in gross written premium or GWP to Rs 3,243 crore.

In January 2020, Digit Insurance raised $84 million in its first external funding round from three growth equity investors – A91 Partners, Faering Capital, and TVS Capital. A month later, Virat Kohli and Anushka Sharma also invested Rs 2.5 crore in the Bengaluru-based firm.

Motor is the largest category for Digit Insurance which contributes 75% of gross premiums on the platform whereas fire and health insurances constitute 20%. According to the company, it had recorded Rs 3,243 crore.

Digit Insurance majorly competes with Acko and a host of general insurance companies. According to the company, it had posted a revenue of Rs 2,252 crore in FY20 and expected to cross Rs 3,000 crore revenue mark in the last fiscal.