Bengaluru headquartered general insurance company Digit Insurance on Friday said it has reached a valuation of $3.5 billion, a 1.8-time jump from January, after securing $200 million in a funding round led by returning investor Faering Capital.
New participants in the round included Sequoia Capital India and IIFL Alternate Asset Managers among others, per a statement.
In January, the company was valued at $1.9 billion after a 18.4 million investment from returning investors A91 partners, TVS Capital and Faering Capital.
Founded by Kamesh Goyal in 2017, Digit has raised $442 million to date. The platform offers motor, health as well as travel, property and other insurance schemes. It is backed by Fairfax India Holdings, a subsidiary of Canada-headquartered insurance firm, Fairfax Financial Holdings.
“We are humbled by the confidence shown by existing investor Faering Capital and the new investors. We will continue to focus on increasing insurance penetration and simplifying processes through technology,” said Goyal, chairman and founder of Digit in the statement.
The company claims to have grown by 44% for the financial year 2020-21 based on IRDAI figures and has registered a gross premium of Rs 3,243 crore over the last three years. The company says it has 2 crore customers and has settled 4 lakh claims since inception.
“It was a difficult year for economies the world over but I am glad to see Digit continuing to stick to its mission of simplicity and growing ahead of the industry. Their relevant products, tech-enabled, simple processes and customer-centric approach sets them apart,” Prem Watsa, chairman of Fairfax Financial Holdings, said in the statement.
The digital insurance space has seen increased interest from investors especially post pandemic. In March, Turtlemint raised $46 million in a Series D round while Omidyar Network backed the Series A round of Risckovry in March.