In the IPO-Bound Digit Insurance Loss Boost by 141%, Increasing to INR 296 Cr in FY22

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In FY22 the startup was able to earn a total cost in the amount of 3,404.2 Cr from marine, fire, and other insurance-related measures

Digit Insurance losses from the insurance sector were INR 385 Cr. This is which is a jump of 102% over INR 185.4 Cr in FY21.

The its promoter Go Digit Infoworks Services continues to own an 83.65 percent stake in the start-up

Insurtech company based in Bengaluru Digit Insurance is all set to prepare its red herring prospectus (DRHP) to the regulator for market transactions SEBI. The Virat Kohli-backed company appears to be the second technology startup following Policybazaar to go public on market.

For FY22 the start-up earned a total amount that was INR 3,404.2 Cr from 3 insurance metrics: fire marine, miscellaneous and fire. This was an increase of 75% over INR 1,943.6 Cr in premiums in the previous financial year.

The initial operating losses of the insurance industry were INR 375 crores, an increase of 102% from the INR 185.4 Cr during FY21.

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Digit’s earnings from investments were set as INR 81.5 Cr in FY22. This is an increase of just a little from INR 67 Cr in FY21.

For FY22 Digit Insurance loss rose to INR 295.8 Cr, which is a increase of 141% of the INR 122.7 Cr for FY21. In FY20 the startup losses before tax were INR 175.2 Cr.

According to its DRHP company, Digit is seeking to raise INR 1,250 crore via a new issues of its shares. Digit’s shareholders, including its promoters include: Go Digit Infoworks Service, Nikita Mihir Vakharia, together with Mihir Atul Vakharia Nikunj Hirendra Shah in collaboration along with Sohag Hirendra Shah and Subramaniam Vasudev together with Shanti Subramaniam. The company will sell off 10.9 Mn equity shares at the IPO.

According to the DRHP it is the intention of the company to use the net proceeds of the IPO to expand its capital base and to maintain the level of its solvency.

Digit Insurance will join tech firms like Nykaa boAt, Nykaa Navi where promoters control the bulk of stakes.

Digit Insurance Shareholding Pattern

  • Go Digit Infoworks Services (promoter): 83.65%
  • TVS Shriram Growth Fund: 3.56%
  • A91 Emerging Fund which: 3.36 percent,
  • Faering Capital: 3.36%,
  • Wellington Hadley Harbour AIV Master Investors: 1.49%
  • as well as Sequoia Growth Investments: 1.04 and Sequoia Growth Investments: 1.04

In 2017, Digit Insurance was founded by Kamesh Goyal in 2017, Digit Insurance offers insurance policies across various sectors. Digit has provided more than 20 million customers in the bike, car and health insurance as well as travel insurance segments, according to its website. Digit was the first unicorn in 2021 after it raised $18 million from its current investor base. Later in the year, the company racked up $200 million through Sequoia Capital, IIFL Alternate Asset Managers, as well as other investors with a $3.5 Billion in value.

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