The Insurance Regulatory and Development Authority (IRDAI) has given approval for general insurance start-up Digit Insurance to raise $84m from three growth equity investors – namely A91 Partners, Faering Capital and TVS Capital.
As part of this funding round, 72 Digit employees also invested over $4.34m along with the investors who are said to hold slightly less than 10% stake in the insurer. Digit is backed by major global investment holding company Fairfax.
According to a report from local business publication Moneycontrol.com, this combined investment would be one of the largest funding rounds in the Indian general insurance sector as it brings the insurer’s total funding to $224m.
A previous report from the publication in October 2019 had stated that Digit was looking to raise funds for solvency needs citing comments from Digit insurance chairman and founder Kamesh Goyal.
He had said that IRDAI rules require solvency or minimum capital to be linked to the amount of business written and the funding round should suffice for another 15 months.
Established in 2016, Digit’s technology-driven platform offers customised general insurance products at reduced costs.