Digit Insurance, headquartered in Bengaluru, is a prominent player in the general insurance and financial services sector, dedicated to simplifying insurance for the masses.
The company offers a range of insurance plans, including Go Digit health insurance, Go Digit car insurance, Digit 2-wheeler insurance (GoDigit bike insurance), Go Digit commercial vehicle insurance, and Go Digit travel insurance.
The inception
Digit Insurance was founded with the vision to revolutionize the insurance industry by simplifying the complex and often confusing insurance landscape.
Drawing an analogy to the era when bread had to be sliced from loaves, and insurance was as complicated as those unsliced loaves, Digit Insurance aimed to make insurance straightforward and transparent.
The company sought to eliminate convoluted rules and offer simplified, customer-centric insurance solutions. In line with this ethos, the company chose the name “Digit” to represent its commitment to providing straightforward and easy-to-understand insurance products.
The investors
Digit Insurance, founded by Kamesh Goyal, achieved unicorn status in 2021, having raised approximately $530.8 million across 8 funding rounds. In a significant funding round led by Sequoia Capital India, IIFL Alternate Asset Managers, and existing investor Faering Capital, the company raised $200 million in July 2021, pushing its valuation to $3.5 billion.
Additional funding of $16.30 million was secured in August 2021, contributing to the company’s estimated valuation of $3.54 billion as of January 2022.
The growth
Digit Insurance has experienced significant growth in recent years. Between April 2020 and December 2020, the company achieved a 31.9% growth rate, with premium earnings reaching $186 million. The company reported more than 1.5 crore customers since its inception. After a major funding round in July 2021, where Digit Insurance raised $200 million, the total funding amounted to $442 million.
In 2020, Digit Insurance expanded its business by 30%, driven by two key products: Covid health insurance and fire insurance. These offerings led to strong growth in premium collection. The company has consistently registered remarkable growth in gross written premiums, reaching Rs 5,268 crore in the financial year 2021-2022.
While the insurance industry faced challenges during the COVID-19 pandemic, Digit Insurance managed to grow by 44%, outperforming the industry’s 5% growth rate. Despite the adverse effects of the pandemic, Digit Insurance’s innovative products and customer-centric approach have contributed to its impressive growth.
Achievements so far
Digit Insurance has achieved notable recognition in the insurance industry, including the title of General Insurance Company of the Year at the 24th Asia Insurance Industry Awards in 2020, the Insurance Startup of the Year – India award from the Insurance Asia Awards 2020, and the distinction of Asia’s Best General Insurance Company of the Year by Asia Insurance Review.
The company has also been recognized as one of India’s Hottest Start-ups in 2019, received the title of the Best General Insurance Company at the CMO Confluence & Corporate Awards in 2019, and ranked 5th among the LinkedIn Top Start-ups of 2018, highlighting its outstanding contributions to the field of insurance and entrepreneurship.
Plans ahead
Digit Insurance is focused on delivering exceptional customer experiences with products tailored to meet customer needs. The company has experienced significant growth, with an 87% increase in premiums from 2019 to 2020, reflecting its commitment to simplifying insurance.
With a solid customer base of 1.4 crores and growing customer trust, Digit Insurance is aiming to surpass the Rs 6,500 crore mark in premium sales.
