Faering leads $200m round for India's Digit Insurance
Indian private equity firm Faering Capital has led a $200 million round for local insurance company Digit Insurance at a valuation of $3.5 billion.
Sequoia Capital India and IIFL Alternate Asset Managers also participated. It follows an $18.4 million investment at a valuation of $1.9 billion in January that featured Faering, A91 Partners, and TVS Capital. The company, which also counts insurance provider Fairfax Financial as an investor, has raised $442 million since its inception in 2017.
Digit’s core products cover motor and health, although there are also several offerings for travel, property, and small businesses. It has processed around 400,000 claims for about 20 million customers in total.
The company aims to differentiate itself through simplification, minimizing use of jargon, and streamlined digital processes. This includes a smart phone-enabled self-inspection option for motor claims, a home loan calculator tool, a small business consultant tool, and an insurance term dictionary.
Digit has also made a feature of its COVID-19 support, notably dedicated channels for making coronavirus-specific claims as well as group and corporate products for covering employees specifically for COVID-19.
The company claims to have grown 44% during the 2021 financial year, with almost 3.6 million employees at 32,000 companies having been provided COVID-19 insurance. The fresh capital will be used in part to settle claims in the event of a third wave of infections in India.
“It was a difficult year for economies the world over, but I am glad to see Digit continuing to stick to its mission of simplicity and growing ahead of the industry,” Prem Watsa, chairman of Fairfax Financial, said in a statement. “Their relevant products, tech-enabled, simple processes and customer-centric approach sets them apart.”
Faering was established in 2009 and currently manages about $350 million across two funds. Its experience in Indian insurance includes participation in a consortium led by True North that acquired Religare Health Insurance for about $162 million in 2017. Faering also invested in Max Bupa Health Insurance in 2019 concurrent with True North taking a 51% position for about $72 million.
More on South Asia
Latest News
Asian GPs slow implementation of ESG policies - survey
Asia-based private equity firms are assigning more dedicated resources to environment, social, and governance (ESG) programmes, but policy changes have slowed in the past 12 months, in part due to concerns raised internally and by LPs, according to a...
Singapore fintech start-up LXA gets $10m seed round
New Enterprise Associates (NEA) has led a USD 10m seed round for Singapore’s LXA, a financial technology start-up launched by a former Asia senior executive at The Blackstone Group.
India's InCred announces $60m round, claims unicorn status
Indian non-bank lender InCred Financial Services said it has received INR 5bn (USD 60m) at a valuation of at least USD 1bn from unnamed investors including “a global private equity fund.”
Insight leads $50m round for Australia's Roller
Insight Partners has led a USD 50m round for Australia’s Roller, a venue management software provider specializing in family fun parks.