India’s Digit Insurance Files for IPO, Aims to Raise $440M

Bengaluru-based startup Go Digit Insurance Ltd. on Tuesday has filed for an initial public offering (IPO) that looks to raise about $440 million, despite its peers putting off their plans to publicly list in India.

The general insurance company’s filing showed that the IPO will include newly issued shares worth ₹12.5 billion ($157.5 million).

Existing shareholders with large investments in the Fairfax Financial Holdings Ltd.-backed firm will also sell 109.4 million shares, although the precise amount that would be raise from that was not provided.

However, a source with direct knowledge of the matter said that sale will raise around $282 million to bring the overall IPO size to $440 million. Digit has not confirmed whether that number is accurate.

The planned IPO came at a time when certain Indian startups, including budget hotel booking site OYO and fintech firm MobiKwik, suspended plans to make a public listing, choosing to keeping an eye on the state of the global market which has significantly lost the gains it generated from a 13-year bull run.

Simplifying the Insurance Purchase Process

Digit seeks to further its presence in general insurance by providing improved customer experience, including a more straightforward method to purchase insurance coverage which allow users to self-examine, claim submissions, and process requests via their smartphones.

The five-year-old company, which is also backed by Sequoia Capital India, said its motor insurance coverage was able to bring in $413 million in gross written premium (GWP) in the financial year ending March.

That premium, according to Digit, represented 4.5% and 3.5% of market share, respectively, of the overall motor insurance premiums written by all non-life insurers in the country.

Fintech investor Osborne Saldanha said Digit has made insurance simple with a product-fueled growth. The company’s product have improved insurance coverage, without the challenges of conventional insurance models and data, and often offers a better price, making it an attractive investment.