Online general insurance startup Digit insurance has raised funding of $45 million (approx Rs 310 crore) from its existing investor Prem Watsa’s Fairfax Holdings. Prem Watsa also participated in the round.
Digit said in its statement that this is the largest round of funding for the company, and it raised a total of $94 million (Rs 665 crores) till date. Digit Insurance was initially funded Rs 385 crores by Fairfax in 2017.
The company will use the funds to invest in technology, launch new lines of products and expand its distribution network across the country.
Bangalore-headquartered Digit insurance was started by Kamesh Goyal in 2016. The company provides various insurance products including car insurance, travel insurance, mobile insurance, jewellery insurance, and commercial vehicle insurance. It has 12 other partnerships with platforms including Flipkart, Paytm, Amazon, Cleartrip, etc. Digit is selling 60, 000 insurances daily (Source: ET).
Online insurance space
Online insurance sector is currently at the growth stage of the curve and seeing new players backed by existing giants from other sectors. It competes with some big players like Info-edge backed PolicyBazaar. PolicyBazaar got a funding of about Rs 200 crores from InfoEdge recently. Besides this, PayTM entered the online general insurance space in February, 2018. Acko, a digital insurance company is looking at investments from the likes of Ola and Amazon. Toffee Insurance, which was started in 2017 acquired a seed funding of $1.5 million last month.