Cloud-based general insurance company Digit Insurance’s net loss shrank sharply in 2020-21 (FY21) as the company reported a strong growth in revenue during the year.
The company, owned and operated by Go Digit Infoworks Services Pvt Ltd, reported a consolidated net loss of Rs 58.67 crore for FY21, against a net loss of more than Rs 193 crore for 2019-20 (FY20), the company’s filings with the Ministry of Corporate Affairs (MCA), show. During the year, the company’s consolidated revenue from operations surged more than 56% to Rs 1,943 crore, taking the company’s total consolidated revenue to Rs 2,324 crore.
Digit Insurance’ expenses also rose sharply during FY21. The company reported consolidated total expenses of Rs 2,358 crore for FY21, against Rs 1,619 crore for FY20, owing to a sharp rise in its other expenses, which include rent, telephone postage, legal charges, among other heads.
"We are expecting approximately Rs 5,000 crore in premiums by the end of this financial year. Given the current scenario in the wake of the pandemic, it would be difficult to give a specific number with respect to our results. Our focus currently is on expanding our health and motor verticals," the company spokesperson said.
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.
Digit also introduced a Group Covid Insurance product focussed on SME Small Medium Enterprises) and large organisations covering 20 lakh lives. The company also launched one cover for eight viral diseases including Covid-19, Dengue and Zika Virus.
The Bengaluru-based company was founded by Kamesh Goyal in 2017. Before founding Digit, Goyal headed H8- Asset Management and US life insurance Company 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.
Note: The copy has been updated with comments from the company.
