Go Digit Invests INR 30 Cr In Dr Reddy’s

Insurtech major Go Digit has invested INR 30 Cr in pharmaceutical major Dr. Reddy’s Laboratories, acquiring a 0.32% stake in the company.

“The investment in shares is being made in the ordinary course of the investment function of the company,” Go Digit said in an exchange filing. 

Insurance companies invest a part of their premiums in government securities, stocks listed on stock exchanges, among others, to generate income.

Founded in 1984, Dr. Reddy’s provides a portfolio of products and services, including active pharmaceutical ingredients (APIs), custom pharmaceutical services (CPS), generics, biosimilars and differentiated formulations. 

Meanwhile, Go Digit was founded in 2017 by Kamesh Goyal. It is a full-stack digital insurance company that offers a wide range of non-life insurance policies across sectors such as motor vehicle, health, travel, and property, among others.

The company’s profit after tax (PAT) surged 176.46% year-on-year (YoY) to INR 118.52 Cr in Q3 FY25, driven by steady revenue expansion and a controlled rise in operating expenses. 

Gross written premium grew 10.24% YoY to INR 2,676.78 Cr in the December quarter of FY25, while net premium written grew 5.13% to INR 2,084.14 Cr. 

As of December 31, 2024, Go Digit’s assets under management stood at INR 18,939 Cr. 

The company, which went public in May last year, competes against the likes of Acko, ICICI Lombard, Bajaj Allianz, Tata AIG, among others.

The insurance sector in India is gearing up for higher competition as finance minister Nirmala Sitharaman, in her budget speech this month, announced 100% FDI for the segment, removing the 74% cap. 

“This enhanced limit will be available for those companies which invest the entire premium in India. The current guardrails and conditionalities associated with foreign investment will be reviewed and simplified,” Sitharaman said.