Make Way for 2021's First Unicorn, Digit Insurance

InsurTech startup Digit Insurance has disclosed that the firm has achieved a valuation of $1.9 billion becoming the very first startup to cross the one billion valuation mark in the New Year. Backed by Canadian billionaire PremWatsa, Digit Insurance raised $18 million in Jan 2021 from existing investors and consequently reached the unicorn status.

Digit Insurance had raised $84 million from A91 Partners, Faering Capital and TVS Capital back in Jan 2020. The startup had earlier received an infusion of $142 million in internal capital infusion from Fairfax Holdings.

Founded in 2016 by insurance industry veteran KameshGoyal, Digit Insurance allows users to buy products such as car insurance, travel insurance, home insurance, commercial vehicle insurance, and shop insurance on its platform. Based in Bangalore, the startup has over 15 million users.

The company expanded its offerings during the pandemic and forayed into the sector of health insurance with new products such as fixed benefit cover for Covid-19 under Insurance Regulatory and Development Authority’s (IRDAI) sandbox initiative.

The three year old startup claimed that it grew by 31.9 percent in 2020 and doubled its valuation since last year. "In an almost-recession like year for most businesses and when the insurance industry itself grew by 0.1 percent, Digit grew by 31.9 percent, earning a premium of $186 million (approximately Rs 1,359.72 crore) in April-December period (FY21)," said a company statement.