Digit Insurance Success Story
Digit Insurance is a Bangalore-based insurtech company founded in 2016 by Kamesh Goyal. The company has been successful in disrupting the traditional insurance market in India by leveraging technology to offer a customer-centric and affordable insurance experience.
Here are some key factors that contributed to Digit Insurance’s success story:
Customer-Centric Approach: Digit Insurance’s customer-centric approach has been a major factor in its success. The company uses customer feedback to design its products and services, which has helped it to gain a loyal customer base.
Technology-Driven Operations: Digit Insurance has embraced technology in its operations, which has helped it to streamline its processes and reduce costs. The company uses AI and machine learning to underwrite policies and process claims, which has helped it to offer faster and more accurate services to customers.
Innovative Products: Digit Insurance has introduced innovative insurance products that cater to the evolving needs of customers. For instance, the company offers a unique policy called ‘Digit Health Care Plus’ that covers mental illnesses and offers unlimited teleconsultations with doctors.
Strong Partnerships: Digit Insurance has partnered with several companies to expand its reach and offer value-added services to customers. The company has tied up with several digital platforms, such as Flipkart and Cleartrip, to offer insurance products to their customers.
Strong Leadership: Kamesh Goyal, the founder of Digit Insurance, is an experienced insurance professional with over two decades of experience in the industry. His strong leadership and vision have been critical in driving the company’s success.
Overall, Digit Insurance’s customer-centric approach, technology-driven operations, innovative products, strong partnerships, and strong leadership have been the key factors that contributed to its success story. The company has emerged as a leading player in the Indian insurance market and is well-positioned to continue its growth trajectory in the coming years.
Digit Insurance - Company Highlights
| Company Name | Digit Insurance |
|---|---|
| Headquarters | Bengaluru, Karnataka, India |
| Sector | Finance, Financial Services and Insurance |
| Founder | Kamesh Goyal |
| Founded | 2017 |
| Valuation | $4+ Billion (as of May 2022) |
| Revenue | $311.83 mn (Rs 2,324 crore in FY21) |
| Funding | $530.8 mn (2021) |
| Website | godigit.com |
Company Highlights
Digit Insurance – About
Digit Insurance – Startup Story
Digit Insurance – Founder and Team
Digit Insurance – Logo
Digit Insurance – Business Model
Digit Insurance – Revenue Model
Digit Insurance – Funding and Investors
Digit Insurance – Growth and Revenue
Digit Insurance – Awards and Achievements
Digit Insurance – Competitors
Digit Insurance – Future Plans
Digit Insurance - About
Based in Bengaluru, Digit Insurance offers general insurance and financial services with a mission to simplify insurance for everyone. Their insurance plans include
- Go Digit health insurance
- Go Digit car insurance
- Digit 2-wheeler insurance or GoDigit bike insurance for bikes
- Go Digit commercial vehicle insurance
- Go Digit travel insurance
Digit Insurance - Startup Story
In the past, bread had to be sliced from loaves, unlike today’s pre-sliced bread. Similarly, insurance seems like an unsliced loaf to many, with customers struggling to choose the right plan. Digit Insurance aims to simplify insurance with transparent solutions and a back-to-basics approach, eliminating twisted rules. The company chose the name ‘Digit’ to reflect their philosophy of simplicity.
Digit Insurance - Founder and Team
Digit Insurance was founded in 2016 by Kamesh Goyal, an experienced insurance professional with over two decades of experience in the industry. Prior to founding Digit Insurance, Kamesh was the CEO of Bajaj Allianz General Insurance.
The company’s leadership team also includes some other experienced industry professionals, including:
- Jasleen Kohli – Chief Distribution Officer
- Jyoti Punja – Chief Customer Officer
- Sreejith Moolayil – Chief Technical Officer
- Venkatesh Potluri – Chief Underwriting Officer
- Anurag Shah – Chief Financial Officer
- Suraj Moraje – Chief Operating Officer
Together, the team at Digit Insurance has been successful in driving the company’s growth and disrupting the traditional insurance market in India.
Digit Insurance - Logo
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Digit Insurance - Business Model
Digit Insurance follows a typical insurance business model, but aims to disrupt the Indian insurance market with innovative products and services. They hold a general insurance license, offering not only car and home insurance but also unique plans for jewelry and mobiles. Digit is digital-first and prioritizes partnerships to create value. They launched Go Digit Covid insurance, similar to customized health insurance, to cover hospitalization and treatment costs for registered Covid-19 patients.
Digit Insurance - Revenue Model
Digit Insurance generates revenue primarily through the sale of their insurance products, including health, car, bike, travel, and commercial vehicle insurance. They earn premiums from customers in exchange for coverage against potential risks. The company also earns interest on their investment portfolio, which helps to increase their revenue. Additionally, Digit Insurance has partnerships with other companies to offer co-branded insurance products, generating additional revenue streams. The company follows a digital-first approach, allowing for cost efficiencies and increased accessibility, contributing to their revenue growth.
Digit Insurance - Funding and Investors
Since its inception in 2016, Digit Insurance has raised a total of $442 million in funding across multiple rounds. Here is a breakdown of their funding rounds and investors:
The current valuation of the company is estimated at $3.54 bn, as of January 2022.
| Date | Transaction Name | Money Raised | Lead Investors |
|---|---|---|---|
| January 18, 2022 | Venture Round | $70 million | Wellington Hadley Harbor and Ithan Creek Master Investors. |
| August 26, 2021 | Venture Round | $16.09 million | TVS Capital Funds |
| July 2, 2021 | Venture Round | $200 million | Sequoia Capital India, IIFL Alternate Asset Managers, Faering Capital and more |
| January 16, 2021 | Venture Round | $18.77 million | A91 Partners, TVS Capital, Faering Capital |
| January 21, 2020 | Venture Round | $84 million | A91 Partners, Faering Capital, TVS Capital Funds |
| June 5, 2019 | Venture Round | $50 million | Fairfax Financial Holdings |
| July 3, 2018 | Venture Round | $45 million | Fairfax Financial Holdings |
| June 1, 2017 | Venture Round | $47 million | Fairfax Financial Holdings |
Digit Insurance IPO
Digit Insurance, supported by Virat Kohli and Prem Watsa’s Fairfax Group, plans to raise $500 million in an IPO with a valuation of $4.5 – $5 billion. Book runners are Morgan Stanley and ICICI Securities. Documents are expected to be presented to the regulator by September, and the IPO is set for January 2023. Sources say that Digit Insurance aims to raise approximately Rs 4,000 crore in the IPO.
Digit Insurance - Growth and Revenue
Digit Insurance has been experiencing rapid growth since its inception in 2016. The company’s annual premium revenue has been steadily increasing, reaching Rs 2,154 crore in the fiscal year 2020-2021, a growth of over 44% compared to the previous year. The company has been expanding its product offerings and has also been diversifying its distribution channels to reach more customers. Digit Insurance’s digital-first approach has allowed it to maintain cost efficiencies and scale its operations quickly.
The company has also been successful in raising significant funding rounds, which have allowed it to further expand its business and product offerings. In 2021, Digit Insurance became the first Indian unicorn of the year, with a valuation of $3.5 billion after raising $200 million in a Series F funding round led by Sequoia Capital India.
Digit Insurance has been able to achieve its growth by focusing on customer-centric and transparent insurance solutions, which has helped it gain a strong reputation in the Indian insurance market.
Digit Insurance - Awards and Achievements
Some of the prominent awards and achievements that Digit insurance achieved throughout the years are:
- Digit Insurance was announced as the General Insurance Company of the Year at the 24th Asia Insurance Industry Awards in 2020
- It earned the Insurance Startup of the Year – India award, which was awarded by the Insurance Asia Awards 2020
- Asia Insurance Review declared Digit as Asia’s Best General Insurance Company of the Year
- Digit Insurance was one of the Hottest Start-ups in India in 2019
- In the CMO Confluence & Corporate Awards 2019, Digit was conferred upon the title of the Best General Insurance Company
- The company ranked 5th among the LinkedIn Top Start-ups of 2018
Digit Insurance – Competitors
The top competitors of the company are Acko, Coverfox, and PolicyBazaar.
- Acko is the top competitor of Digit Insurance. It is a Mumbai-based company founded in 2016. It also works in the insurance industry.
- Coverfox is one of the top competitors of Digit Insurance. It was founded in 2013 and is headquartered in Andheri East, Maharashtra, India. It also operates in the insurance sector.
- PolicyBazaar is also a top rival of Digit Insurance. It was founded in 2008 and is headquartered at Gurgaon, Haryana, India. The company competes in the insurance sector.
Digit Insurance - Future Plans
Digit Insurance has several plans for the future. The company aims to continue expanding its product offerings and distribution channels, with a focus on making insurance more accessible and easy to understand for customers. Digit Insurance plans to leverage technology to further streamline its operations and enhance the customer experience.
The company has also expressed an interest in exploring international markets, starting with the Middle East and Southeast Asia. Digit Insurance aims to replicate its success in the Indian insurance market in these regions by providing innovative and customer-centric insurance solutions.
Digit Insurance has also announced its intention to go public with an initial public offering (IPO) in 2023, with the aim of raising funds to support its growth and expansion plans. The company plans to continue focusing on profitable growth while maintaining its commitment to providing transparent and customer-friendly insurance solutions.
