Tech

Sequoia India-backed Digit Insurance files for $440 million IPO – TechCrunch


Indian insurer Digit has filed for an initial public offering, seeking to raise around $440 million even as many of its domestic peers have postponed plans to go public in the country. this South Asian country.

The Indian startup, whose value skyrocketed to $3.5 billion in a funding round led by Sequoia India last year, said in a profile told the local regulator on Tuesday that it plans to raise up to $157.5 million through a new share issue while existing shareholders plan to sell about 109.45 million shares. It didn’t say exactly how much it plans to raise in the public offering, but a person familiar with the matter told TechCrunch that the startup is aiming to raise around $440 million in total. la.

The five-year-old startup, which sells auto, health and travel insurance, is part of a group of companies trying to expand the number of individuals in India who buy insurance. Digit, founded by Kamesh Goyal, a former KPMG executive with more than three decades of experience in the insurance industry, says it has simplified the insurance buying process, giving users the ability to self-check Investigate, request submission and process service requests from smartphones.

“Digit simplifies insurance through product-driven growth. The problem with insurance is that it’s seen as a commodity that makes pricing king – a lower valuation will apply. But cheaper is a race to the bottom. Digit’s products have enhanced coverage (without traditional insurance models and data) and are generally better priced, making it an attractive investment.” Osborne Saldanhaa fintech investor based in Bangalore, in a newsletter last year.

“Digit goes one step further and doubles down on service-led growth. In its 7th transparency report, Digit reported ‘average approval time for cashless claims in March 2021 is 1 hour 8 minutes and for chargeback claims is 2 hours 1 minute. Our overall claim closure rate for health is 96%. ‘ It settled more than 95% of claims on most products,” he added.

The startup, which also includes Fairfax Group, Indian cricketer Virat Kohli and TVS Capital among backers, said its motorcycle insurance generated $413 million in total premiums equal to written for the financial year ended March. “This premium represents a market share of 4.5% and 3.5%, respectively, of total motor insurance premiums written by all insurers. non-life insurance in India,” it added.

The startup distributes its insurance through 32,600 partners, including nearly 31,000 agents and point-of-sale brokers.

Digit Insurance’s filing comes at a time when several local startups including budget hotel chain Oyo and financial services platform MobiKwik have delayed their IPO plans as they closely monitor the situation. the state of the global market, which reversed much of the gains from a 13-year rally. run.





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