Go Digit Q3 Profit Zooms 2.8X To INR 119 Cr

SUMMARY

Gross written premium climbed 10.24% year-on-year to INR 2,676.78 Cr during the December quarter

The listed company said that it sold 0.9 Cr policies to 6.2 Cr customers in the April-December 2024 period, taking its market share in the insurance space to 3.3%

The listed insurtech major’s total operating expenses rose 3% YoY and 8% QoQ to INR 2,308.89 Cr in Q3 FY25

Insurtech company Go Digit General Insurance’s profit after tax (PAT) zoomed 176.46% to INR 118.52 Cr in the third quarter (Q3) of the fiscal year 2024-25 (FY25) from INR 42.87 Cr in the year-ago period on the back of strong growth in its revenue and controlled rise in expenses.

On a sequential basis, the listed insurtech giant’s profit surged 32.46% from INR 89.47 Cr.

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

The company reported a 10.24% increase in gross written premium (GWP) to INR 2,676.78 Cr in the quarter ended December 2024 from INR 2,427.97 Cr in Q3 FY24. Net premium written also grew 5.13% to INR 2,084.14 Cr in Q3 FY25 from INR 1,982.39 Cr in the year-ago quarter. 

To comply with the IRDAI (Actuarial, Finance and Investment Functions of Insurers) Regulations, 2024, Go Digit started recognising GWP on a 1/n basis where “n” denotes the policy duration for applicable long-term products, effective October 1, 2024.

While this resulted in a loss of INR 60.81 Cr in its gross premium written during the quarter under review, it had no impact on its PAT, the company said in an exchange filing.

Including other income, total revenue stood at INR 2,371.86 Cr during the quarter under review, up 7.11% from 2,214.36 Cr in Q3 FY24.

The premium retention ratio, which indicates the company’s ability to retain customers, fell to 83.8% in Q3 FY25 from 87.9% in the corresponding quarter last year.

As of December 31, 2024, Go Digit’s assets under management (AUM) stood at INR 18,939 Cr, up 20.14% from INR 15,764 Cr on March 31, 2024.

In an investor presentation, the Bengaluru-based company said that it sold 0.9 Cr policies to 6.2 Cr customers in the April-December 2024 period, taking its market share in the insurance space to 3.3%.

Third-party motor premiums remained the single-largest contributor to Go Digit’s revenue. The company earned a net premium of INR 1,385.42 Cr by selling motor insurance in Q3 FY25, up 6.25% from INR 1,303.89 Cr in the year-ago period. Go Digit claimed that its market share in the motor insurance space stood at 6.1% at the end of the December 2024 quarter.

The second biggest source of revenue for Go Digit was health insurance with the company raking in a cumulative premium of INR 438.48 Cr from this segment in the reported quarter, a jump of 21.06% from INR 362.19 Cr in Q3 FY24.

Net premium earned from crop insurance stood at INR 193.21 Cr,  premium from fire insurance came in at INR 26.56 Cr and premium earned from marine insurance stood at INR 1.29 Cr in the Q3 FY25.

Meanwhile, Go Digit’s board has promoted Atul Mehta to the role of country head for retail geographies and key investments, with effect from Thursday (January 23).

Where Did Go Digit Spend In Q3?

The listed insurtech major’s total operating expenses rose 3% YoY and 8% QoQ to INR 2,308.89 Cr in the quarter ended December 31, 2024.

Incurred Claims: The total expense under this head rose nearly 3% to INR 1,519.96 Cr in Q3 FY25 from INR 1,476.88 Cr in the same quarter last year. Sequentially, it surged almost 14% from 1,334.47 Cr.

Of this, the company spent INR 948.77 Cr towards insurance claims while it spent an additional INR 571.19 Cr on change in outstanding claims in the reported quarter. 

Employee Costs: Go Digit spent INR 86.20 Cr towards employees’ remuneration and welfare expenses in Q3 FY25, up 12% from INR 76.89 Cr in the year-ago quarter. However, employee costs declined nearly 5% quarter-on-quarter from INR 90.48 Cr.

Advertisement Expenses: The spending on business development and sales promotion initiatives grew 9.65% YoY and 28.79% QoQ to INR 104.67 Cr in the December quarter.

Go Digit also said that expenses related to the insurance business for the nine months ended December 31, 2024, exceeded the regulatory limits, as specified under IRDAI (Expenses of Management, including commission of Insurers) Regulations, 2024.

“The company has received forbearance from IRDAI for the financial year 2023-24 via a letter dated December 27, 2024. Authority has advised the company to submit board approved, projected, quarterly EoM ratios for the financial year 2025-26 before March 31, 2025,” it further said.

Go Digit shares closed 1.85% lower at INR 286.20 apiece on the BSE on Wednesday (January 22). The company released its third-quarter results after market operating hours today.

You have reached your limit of free stories
Become A Startup Insider With Inc42 Plus

Join our exclusive community of 10,000+ founders, investors & operators and stay ahead in india's startup & business economy.

2 YEAR PLAN
₹19999
₹7999
₹333/Month
UNLOCK 60% OFF
Cancel Anytime
1 YEAR PLAN
₹9999
₹4999
₹416/Month
UNLOCK 50% OFF
Cancel Anytime
Already A Member?
Discover Startups & Business Models

Unleash your potential by exploring unlimited articles, trackers, and playbooks. Identify the hottest startup deals, supercharge your innovation projects, and stay updated with expert curation.

Go Digit Q3 Profit Zooms 2.8X To INR 119 Cr-Inc42 Media
How-To’s on Starting & Scaling Up

Empower yourself with comprehensive playbooks, expert analysis, and invaluable insights. Learn to validate ideas, acquire customers, secure funding, and navigate the journey to startup success.

Go Digit Q3 Profit Zooms 2.8X To INR 119 Cr-Inc42 Media
Identify Trends & New Markets

Access 75+ in-depth reports on frontier industries. Gain exclusive market intelligence, understand market landscapes, and decode emerging trends to make informed decisions.

Go Digit Q3 Profit Zooms 2.8X To INR 119 Cr-Inc42 Media
Track & Decode the Investment Landscape

Stay ahead with startup and funding trackers. Analyse investment strategies, profile successful investors, and keep track of upcoming funds, accelerators, and more.

Go Digit Q3 Profit Zooms 2.8X To INR 119 Cr-Inc42 Media
Go Digit Q3 Profit Zooms 2.8X To INR 119 Cr-Inc42 Media
You’re in Good company