Online digital general insurance company Digital Insurance has reportedly raised an amount of Rs 315 crore in a second funding round. This particular round was led by Fairfax Holdings.
Through this funding round, the company aims to expand its footprint across the country even to the smaller regions. A part of the funds will also be utilized to strengthen the technology platform as well.
“We are looking at major expansion opportunities for our product line as well as our locations of operation and staff strength, looking at the growth path we felt the need for this second round of funding,” said Kamesh Goyal, Chief Executive Officer and the other major shareholder after Fairfax in the company.
Goyal stated that the locations that they are focusing are spread across towns like Siliguri, Nagpur in Maharashtra, Ranchi, Coimbatore in Tamil Nadu, Patna, Gauhati in the east and Srinagar in Jammu and Kashmir among others.
Fairfax has also invested in the company earlier once, and this is its second investment. The funds in the first round amounted to Rs 350 crore. Along with this, Fairfax is also the largest shareholder of Digit Insurance.
With a total amount of Rs 665 crore, Digit has an objective to make buying and claiming insurance products simple and completely digitized for Indian consumers. The company has also introduced innovative products like jewelry insurance, insurance against flight delays and others.
“Among the policies sold the major chunk in terms of the number is from travel segment, we also have motor insurance policies whose premium amount adds up to become larger than other categories,” added Goyal. “Going ahead we will stress on project insurance with an average tenure between three to five years.”
The company stated that they settle claims within 10 to 20 minutes over a phone call and now they are targeting to reduce the time taken to 7 minutes. Over the mobile, the company is settling around 20 claims per day which they intend to scale up to around 100.
The company has around 525 people and aims to increase it by 200 by September. Digit Insurance is selling around 6000 policies per day around 12 partnerships with corporate ventures such as Flipkart, Amazon, Paytm, Sterling Resorts and 1500 retail agents across India.