Jobaaj Stories
Less than two weeks after Go Digit filed its DRHP with SEBI & less than 4 days after HDFC Bank announced an investment in Go Digit Insurance, Axis has also jumped into the fray to get a piece of the company.
Digit Insurance is a Bengaluru-based Insurtech company that aims to simplify insurance for its customers. It was founded in 2017 by Mr. Kamesh Goyal, an insurance veteran. The company provides a host of insurance services like travel, property, vehicle, group health, and several others.
The startup turned unicorn in January 2021 as it was the first unicorn in the year and was valued at around $1.9 billion at the time. In its latest fundraise in May 2022, the insurer was valued at around $4 billion when it added Sequoia and India Infoline to its existing list of investors which include A91 Partners, Faering Capital, Fairfax Group of Canadian Billionaire Prem Watsa & even Virat Kohli (who also serves as company brand ambassador)!
Prasol chemicals receives nod from SEBI to float IPO, read now.
Three days ago, HDFC Bank announced that it would be picking up 9.94% in the company for a consideration ranging between Rs 50-70 crores. Now, Axis Bank has announced its intent to acquire a 10% stake in the Insurance startup's Life Insurance business, for $9 million. This transaction will add another major private lender to the investors' list of the insurtech company.
The third largest private lender in India's proposed purchase is valuing the Life Insurance business of Go Digit Insurance at a valuation of $90 million. However, Go Digit is yet to receive a license for the same. It applied for a life insurance business license in mid-August with the IRDAI to set up a life insurance business.
This purchase is Axis Bank's effort to have a piece of the large Indian life insurance market. The Indian life insurance market, which is pegged as the world's tenth largest, is still fairly untapped. Indian Insurance coverage is still one of the lowest among all South-Asian countries.
Go Digit has filed its DRHP for floating its IPO whose value is expected to be around Rs 1,250 crores. SEBI is yet to approve the same.
Article by Aman Agarwal.
This news piece is brought to you in association with Jobaaj.com
