Learn what made digit insurance a unicorn from a startup in only three years

Digit Insurance is a source of protection for any anxieties that may arise in one's life. It offers a variety of insurance products, including Bike Insurance, Commercial Vehicle Policy, Car Insurance Policy, Health and Travel Insurance Policies, and more, all of which are designed to protect its users without causing them any inconvenience. 

Highlights of Digit Insurance

 With a $1.9 billion valuation, Digit Insurance joins the Unicorn Club.

Following the recent unreported financing round, Digit Insurance becomes the first Indian start-up to join the Unicorn Club in 2021.

It also introduced a new COVID-19 product called COVID-19 Fixed Benefit Cover. Through their Digit Group Illness Insurance product, they've been able to reach out to more than 20 lakh Indians.

About Digit Insurance

 Digit Insurance is a company that specializes in providing insurance solutions to individuals and businesses.

Digit Insurance is a general insurance and financial services firm with headquarters in Bengaluru. Its goal is to simplify insurance for the average person. Digit General Insurance offers a variety of insurance plans, which are divided into the following categories:

• Go Digit for your health insurance.
• Auto insurance from Go Digit
• Calculate the cost of two-wheeler insurance or Bike insurance from Go Digit
• Commercial car insurance from Go Digit
• Travel insurance is provided by Go Digit.

The Story of Digit Insurance as a Startup

Before, loaves of bread had to be sliced. Unlike today's slices, it wasn't as simple. People think of insurance in the same way they think of those unsliced loaves. Customers are also confused about which package is best for them. This mindset, according to the business, can be modified. With this, Digit Insurance began simplifying insurance with the goal of returning to the essentials and providing more transparent insurance options. There were no convoluted rules in this game because it was simple. The organization required a simple name, and the name digit was deemed to be ideal and appropriate.

Digit Insurance – Logo

The Man behind Digit Insurance: Founder Kamesh Goyal

Digit Insurance's Founder and Chairman is Kamesh Goyal. He graduated from Delhi University with a B.A. LLB and an MBA. He began his career as a manager at KPMG in India.

He had previously worked for Allianz Insurance as the Head of Asset Management and Group Planning and Controlling. He, too, was named as Regional Chief Executive Officer and held previous positions there, including Chief Operating and General Officer.

Business Model of Digit Insurance

The Digit Insurance business model is similar to the business models used by insurance companies; the main difference is that Digit intends to disrupt the Indian general insurance sector by introducing a variety of new goods and services. It maintains a general insurance license, allowing it to sell health insurance policies. Protection for cars and homes is typical, but Digital Insurance also offers insurance for jewellery and mobile phones. Furthermore, by operating online, the organization is reinventing the insurance industry. Its business goal is to form mutually beneficial alliances with a variety of companies.

 Digit is one of the insurance businesses that has developed Go Digit Covid insurance, among other plans. The company's coronavirus health insurance is akin to a personalized health insurance policy in that it helps pay the costs of hospitalization and treatment for Covid-19 afflicted people who have previously registered with Digit.

Revenue Model for Digit Insurance

The majority of Digit Insurance's revenue comes from its commercial line of products, which comprises insurance plans and premiums. The general insurance company offers a variety of health, auto, and travel insurance coverage. When it was last documented in October 2021, Digit had $400 million in annual premiums.

Funding and Investors in Digit Insurance

In 2021, Digit Insurance has received enough financing to become a unicorn. Over the course of its eight investment rounds, the company has raised $530.8 million. Digit's most recent investment round, which took place on January 18, 2022, saw the company raise $70 million from Wellington Hadley Harbor and Ithan Creek Master Investors.

 According to a Digit Insurance press release dated July 2, 2021, the business's Founder and Chairman, Kamesh Goyal, has revealed Digit's next financing round, in which the company plans to raise up to $200 million. According to the reports, Sequoia Capital India, IIFL Alternate Asset Managers, and previous investor Faering Capital will lead this fresh round of funding. This investment brought the total cash invested in the company to $442 million, making it one of the largest funding rounds in the Indian insurance industry's history. Digit Insurance was valued at $3.5 billion after this round of funding. According to sources dated August 26, 2021, Digit Insurance received an amount of ($16.30 mn)Rs 121 crores in a round sponsored by TVS Growth Fund and other high net worth individuals, while it's previous fundraise of $200 million had yet to be reported with the Ministry of Corporate. According to recent regulatory filings, Digit has reportedly passed a special resolution allotting a total of 38,47,427 equity shares at an issue price of Rs 314 per share to raise the funds.

Digit Insurance - Expansion

Digit Insurance expanded by 31.9 percent, generating $186 million in premiums from April to December of this year, and claimed to have over 1.5 crore subscribers since its beginning. Digit Insurance announced that it raised a total of $442 million, which currently stands at $530.8 million, after completing the most investment round in July 2021, where the firm decided to raise $200 million.

 The company plans to increase its revenue by 30% in 2020. The company's expansion was aided by two significant products. Covid health insurance and Covid fire insurance are the two options. Because of the aforementioned considerations, the company's premium collection has grown significantly.

According to reports, the car insurance sector is experiencing a lack of growth, but in 2021, things will return to normal, and the vehicle insurance sector will rise with the other sectors. Though the industry suffered greatly as a result of the Covid-19 incident, which caused a large drop in interest rates, people's panic drove them to get Covid health insurance, allowing insurance companies to grow faster than expected.

The coronavirus epidemic has had implications throughout most major industries, including the insurance industry, which grew at a rate of barely 5% last year. Despite the pandemic's effects, Digit Insurance has seen a 44 percent increase in revenue.

 Digit Insurance has already accomplished a number of significant milestones. Here are some of the company's most well-known growth achievements:

• In less than four years of business, Digit attained the coveted unicorn valuation.
• The company states that it serves more than 2 crore people.
• The company's group health business, which was valued at Rs 170 crore last year, grew 11 times.
• Between March 2020 and September 2021, Digit Insurance claims to have sold 79,536 health insurance and covered 42.5 lakh people.
• As of March 2021, the company had grown by 44 percent with a premium of Rs 3,243 crore.
• Digit is being touted as the first Indian firm to be valued at a unicorn in 2021.

Awards and Achievements of Digit Insurance

The following are some of the notable accolades and achievements that Digit Insurance has received over the years:

• At the 24th Asia Insurance Industry Awards in 2020, Digit Insurance was named General Insurance Company of the Year.
• Insurance Asia Awards 2020 presented it with the Insurance Startup of the Year - India award.
• Digit was named Asia's Best General Insurance Company of the Year by Asia Insurance Review.
• In India, Digit Insurance was one of the most popular start-ups in 2019.
• Digit received the title of Best General Insurance Company at the CMO Confluence & Corporate Awards 2019.
• LinkedIn's Top Start-ups of 2018 ranked the company fifth.

Competitors - Digit Insurance

Acko, Coverfox, and PolicyBazaar are the company's main competitors.

• Digit Insurance's main competition is Acko. It is a Mumbai-based startup that was established in 2016. It's also useful in the insurance business.
• Coverfox is one of Digit Insurance's main competitors. Its headquarters are in Andheri East, Maharashtra, India, where it was created in 2013. It also works in the insurance industry.
• Digit Insurance's main competitor is PolicyBazaar. Its headquarters are in Gurgaon, Haryana, India, where it was founded in 2008. The business is in the insurance industry.

Future Plans for Digit Insurance

Premiums increased by 87 percent from 2019 to 2020, according to the firm. Along with the 1.4 crores of existing clients, it has garnered a lot of confidence from them and is looking forward to growing its customer base. 

When Digit Insurance completes its fifth year of operations in October 2022, it hopes to surpass the Rs 6,500 crore milestone in premia sales.