Digit Insurance's FY21 net loss shrinks as revenue soars over 50%
Premium- Fairfax-backed Digit Insurance turned unicorn, or a private company with $1 billion in valuation, in January 2021, becoming the first to join the coveted unicorn club in 2021
MUMBAI: Cloud-based general insurance company Digit Insurance’s net loss shrank sharply in financial year 2020-21 (FY21) following strong revenue growth during the year.
The company, owned and operated by Go Digit Infoworks Services Pvt Ltd, reported a consolidated net loss of ₹58.67 crore for FY21, down from ₹193 crore loss for FY20, as per filings with the Ministry of Corporate Affairs (MCA). During the year under review, the company’s consolidated revenue from operations surged more than 56% to ₹1,943 crore, taking total consolidated revenue to ₹2,324 crore.
Digit Insurance’s expenses also rose sharply during FY21. The company reported consolidated total expenses of ₹2,358 crore for the year against ₹1,619 crore for FY20, led by a sharp rise in its other expenses, which include rent, telephone postage, legal charges, among other heads.
The Fairfax-backed company, turned unicorn, or a private company with $1 billion in valuation, in January 2021, becoming the first company to join the coveted unicorn club in 2021. As many as 45 companies have turned unicorns since then. Digit Insurance had seen a dip in demand for its key business vertical--motor insurance--when the country went into a lockdown in March 2020. VCCircle had reported that Digit had quickly rolled out several COVID-19 related products aimed to cover people across ages, professions and risks, to keep its business running.
Digit had also curated a need-based product with insurance regulator IRDAI, in early 2020. This product eventually led to the launch of the country’s first Covid-19 insurance product in February 2020.
The company had introduced a Group Covid Insurance product focussed on small and medium enterprises (SMEs) and large organisations covering 20 lakh lives. It had launched a single cover for eight viral diseases including covid-19, dengue and Zika virus infection.
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The Bengaluru-based company was founded by Kamesh Goyal in 2017. Before Digit, Goyal headed H8 - asset management and US life insurance, for Allianz Asset Management. The company has investments from cricketer Virat Kohli and actor Anushka Sharma, along with 91 Partners, TVS Capital and Faering Capital.
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