Digit Insurance Startup Story – Disrupting the Insurance Sector

Life is uncertain and you never know what is going to happen next. Digit Insurance is one such company that provides security from all these insecurities in life. The company offers a wide range of insurance policies such as Health Insurance, Life Insurance, Car Insurance, Travel Insurance, Commercial Vehicle Policy, Bike Insurance, etc. The company aims to provide insurance to all people by making it simple. Digit Insurance has raised total funding of $530.8 Million to date and it is one of the few Unicorn companies in India. So let us get into the article the read the startup journey of this Unicorn company.

Digit Insurance – Key Highlights

• Company Name – Digit Insurance
• Founding Year – 2017
• Headquarters – Bangalore, Karnataka, India
• Founder – Kamesh Goyal
• Industry – Financial Services, Finance, Insurance
• Company Type – For Profit
• Valuation - $4 Billion
• Revenue - $311.83
• Funding - $530.8 M
• Website – godigit.com

Digit Insurance – Founders and Team

• Kamesh Goyal – Kamesh is the chairman and one of the founders of the company. He studied Master’s in Business Administration from DU and also pursued B.A. LLB. Goyal was the previous head of Group Planning & Controlling and Asset Management of Allianz Insurance. He also served as Regional Chief Executive, Country Manager, COO, and, CEO at Bajaj Allianz.
• Philip Varghese – Philip is the Executive Director of the company. He previously served as CIO, Senior Manager, and, Head Direct at Bajaj Allianz General Insurance. Philip also worked with Bajaj Allianz as COO and CEO.
• Vijay Kumar – Vijay served as CEO and Principal Officer at the company. He worked with various companies such as Kirloskar Pneumatic Company, Hyundai Motor India Ltd., Bajaj Allianz, and, Maruti Udyog Ltd., before joining Digit Insurance.
• Jasleen Kohli – Jasleen is going to be the next MD and CEO of the company. She is the first employee of Digit Insurance and previously worked as CDO (Chief Distribution Officer). Jasleen is going to become the youngest CEO in the insurance industry as she is just 42 years old.

Digit Insurance – Brand Name, Logo, and Tagline

• Brand Name – The Company wanted to have a simple name and thus they came up with Digit Insurance. The name is 100% appropriate for the company and it is easier to remember as well.
• Logo – The Company’s logo is in simple black and white colour that makes it stand out. Almost all the companies use various colours to represent their brand but Digit Insurance went with something monochrome and it is working with the idea of the business.

Digit Insurance – Business Model

Digit Insurance works on the same business model just like any other insurance company. The only difference is that the company offers a variety of new products to its customers to disrupt the insurance sector of India. They hold the general license that allows Digit Insurance to sell health insurance to customers.

The company also provides other insurances such as mobile & jewellery insurance. Digit Insurance works digitally to redefine the insurance sector and its goal is to form strategic partnerships with various companies.

Digit Insurance also launched Covid insurance, which protects people from any mishappenings due to the coronavirus. It is similar to customized health insurance that helps in the treatment cost and hospitalization of the Covid patients.

Digit Insurance – Revenue Model

Digit Insurance’s revenue comes from its insurance plans and the premium amounts. The company offers a diverse range of insurance plans to its customers such as travel, motor, and health.

Their last premium recorded in FY 2021 amounts to $400 M.

Digit Insurance – Growth

Digit Insurance has seen tremendous growth in the past few years. Some of the major growth factors of the company are as follows:

• The company has served around 2 crore people since its incorporation.
• They received the Unicorn status in just 4 years.
• Digit Insurance valuation crosses $4 Billion in just 6 years.
• The company saw a growth of 11 times in the group health business. It was last recorded as INR 170 crores.
• Digit Insurance grew more than 45%, having a premium of INR 3,243 crores as of FY 2021.
• They claim of selling more than 79,500 health policies.
• Digit Insurance has also insured more than 43 lakh people in FY 2020 -2021.

Digit Insurance – Awards and Achievements

Digit Insurance has won several awards and nominations for its outstanding work in the insurance industry. Some of the awards and achievements of the company are as follows:

• General Insurance Company of the Year – By Asia Insurance Industry wards, 2020
• Insurance Startup of the Year – By Insurance Aisa Awards, 2020
• Best General Insurance Company – By CMO Confluence & Corporate Awards, 2019
• Asua’s Best General Insurance Company of the Year – By Asia Insurance Review
• Hottest Startups in India – 2019
• 5th Position – By LinkedIn Top Start-ups, 2018

Digit Insurance – Funding and Investors

Digit Insurance has raised total funding of $530.8 M in over 8 funding rounds. Details of all the funding and investors of the company are as follows:

• $47 M – Venture Round, Fairfax Financial Holdings, Jun 1, 2017
• $45 M – Venture Round, Fairfax Financial Holdings, July 3, 2018
• $50 M – Venture Round, Fairfax Financial Holdings, Jun 5, 2019
• $84 M – Venture Round, A91 Partners, TVS Capital Funds, Faering Capital, Jan 21, 2020
• $18.77 M - Venture Round, A91 Partners, Faering Capital, TVS Capital, Jan 16, 2021
• $200 M - Venture Round, Sequoia Capital India, Faering Capital, IIFL Alternate Asset Managers, and more, Jul 2, 2021
• $16.09 M – Venture Round, TVS Capital Funds, Aug 26, 2021
• $70 M - Venture Round, Wellington Hadley Harbor, Ithan Creek Master Investors, Jan 18, 2022

Digit Insurance – Challenges Faced

Digit Insurance had to face various challenges in its entrepreneurial journey. The company had to go through several hardships during its initial days but it fought through all those odds and reached this level. Some of the major challenges faced by the company are as follows:

• Mindset – A lot of people in India still do not understand the importance of having insurance. Most of the time neglect this thing and let things go as it is going. Changing the mindset of traditional people and convincing them to buy insurance for themselves is one of the biggest challenges for the company.
• Competitors – Digit Insurance has various competitors in the market. Companies like PolicyBazaar, Acko, LIC, Coverfox, etc. have a good customer base and they are doing well on several levels. It would not be that easy for the company to overshadow these competitors and shift their trusted customers.

Digit Insurance – Future Plans

Digit Insurance is a fairly new company in the insurance sector and it has a long way to go. The company has various exciting plans for the future. Some of their significant plans of them are as follows:

• The company wants to achieve a good customer base and work on their customer acquisition. They already have more than 1.5 crores of existing customers in the market.
• They are working on reaching the INR 6,500 crores of premia sales mark by the end of FY 2023.
• Digit Insurance is also looking forward to increasing its valuation and revenue.
• They are also open to forming new strategic partnerships with various companies.
• Digit Insurance is also looking to hire more employees as the company is growing tremendously.
• The company will aware more people about the importance of having insurance in their life.
• Digit Insurance will keep on disrupting the insurance industry with these new and innovative ideas.