Gaining capital for its effort to win insurance customers via mobile technology, in a fresh funding round, Indian fintech startup Digit boosted its valuation to $3.5 billion.
As per a statement on Friday, from the existing investor Faering Capital Pvt and others along with Sequoia Capital India the company is raising $200 million. Targeted by rival startups which includes Amazon.com Inc-backed Acko, in India’s fast-expanding insurance market, it is one of the largest funding rounds. By making the process of submitting claims, receiving payments and buying cover easier, Digit is trying to expand India’s base of the insured.
The funding round is subject to regulatory approvals as stated by the startup that provides travel, health and auto insurance. In January when the company was valued at $1.9 billion, the formerly called Go Digit General Insurance Co. became a unicorn. Raising a total of $442 million, the company is now almost doubling its valuation.
Founded in 2017, the company’s first investor was a Canadian billionaire Prem Watsa and early backers which includes Virat Kohli who is an Indian test cricket captain and TVS capital funds. In February 2020, Digit introduced the world’s first COVID health insurance product (as called by it) which now covers 3.5 million Indians for the infection. According to Kamesh Goyal who is the founder of Digit, although the market was dominated by state-owned insurers, private companies have gained market share recently.