Indian insurance startup Go Digit has successfully raised US$141 million from numerous investors in anticipation of its upcoming initial public offering (IPO).
According to a filing submitted to the stock exchange, anchor backers for the IPO include prominent entities such as Fidelity, Goldman Sachs, Morgan Stanley, Abu Dhabi Investment Authority, Bay Pond, Mirae Asset Management, Steadview Capital, and HSBC. Additionally, Indian mutual funds operated by SBI, ICICI, Axis, Tata, and Edelweiss are among the supporters.
Founded by Kamesh Goyal, a former executive at KPMG and a seasoned professional in the insurance industry, Go Digit specialises in offering auto, health, travel, and accidental insurance. The startup distinguishes itself by simplifying the insurance purchasing and redemption process, enabling users to conduct self-inspections, submit claims, and process service requests directly from their smartphones. As of December last year, Go Digit boasted approximately 43 million customers and had issued a total of 8 million policies, as per its IPO prospectus.
Headquartered in Mumbai, the startup aims to raise approximately $313 million from the IPO, seeking a valuation of around $3 billion. This valuation is approximately 25% lower than its previous private valuation of $4 billion.
The IPO comes at a time when retail investors in India are increasingly showing interest in tech startup stocks. Despite the modest 1.4% increase in the nation’s benchmark index, Sensex, this year, many tech startups that have recently gone public on Indian stock exchanges have outperformed it. For instance, shares of food delivery firm Zomato have surged by 51.2% this year, while insurance aggregator PolicyBazaar’s stock has risen by 60.4%.
Go Digit, supported by investors including Peak XV, Fairfax Group, TVS Capital, A91 Partners, and Indian cricket star Virat Kohli, had initially planned to go public in 2022 but postponed the move due to unfavourable market conditions. In its draft prospectus filed at the time, the company had sought to raise $440 million in the IPO.
Go Digit is among several Indian companies poised to list publicly this year. Food delivery startup Swiggy recently confidentially filed for an IPO, seeking to raise approximately $1.25 billion. Ola Electric filed to go public late last year, while its parent company, ride-hailing giant Ola, plans to follow suit later this year.
