IPO-Bound Digit Insurance Loss Soar By 141% To INR 296 Cr In FY22

Bengaluru-based insurtech startup Digit Insurance is all set to file its draft red herring prospectus (DRHP) with the market regulator SEBI. The Virat Kohli-backed firm seems to be the second tech startup after Policybazaar to hit the public bourses.

In FY22, the startup had earned a total premium of INR 3,404.2 Cr from three insurance metrics –fire, marine and miscellaneous. This is a 75% jump from INR 1,943.6 Cr collected in premium in the previous financial year. 

The startup operating losses from the insurance business stood at INR 375 Cr, a 102% jump from INR 185.4 Cr in FY21. 

Digit’s income from investments was pegged at INR 81.5 Cr in FY22, a slight increase from INR 67 Cr in FY21. 

In FY22, Digit Insurance loss rose to INR 295.8 Cr, a 141% jump from INR 122.7 Cr in FY21. In FY20, the startup losses after tax stood at INR 175.2 Cr. 

As per its DRHP, the startup is raising INR 1,250 Cr through fresh issue of shares. Digit’s shareholders including its promoters – Go Digit Infoworks Service, Nikita Mihir Vakharia, jointly with Mihir Atul Vakharia, Nikunj Hirendra Shah, jointly with Sohag Hirendra Shah, and Subramaniam Vasudev, jointly with Shanti Subramaniam – will be offloading 109 equity equity shares during the IPO. 

As per the DRHP, the startup intends to utilise the net proceeds from the IPO to augment its capital base and maintain solvency levels.

Digit Insurance Shareholding Pattern

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

Founded in 2017 by Kamesh Goyal, Digit Insurance offers insurance policies in multiple verticals. Digit has served more than 20 Mn customers across car, bike, health and travel insurance segments, per its website. The startup became the first unicorn of 2021 after raising $18 Mn from its existing investors. Later in the year, the startup raised $200 Mn in funding from Sequoia Capital, IIFL Alternate Asset Managers and other investors at over $3.5 Bn valuation.