Digit insurance, a Bengaluru-based general insurance company is simplifying the way insurance products are viewed, purchased and claimed. It mainly offers health, car, bike and travel insurances with a pretty transparent and basic understanding of insurance policies.

Recent Fundraising and Current Valuation

In an initial funding round in January 2021, the Fairfax-backed startup raised $18 million making it valued at $1.9 billion. After this round of funding, the startup became the first one to enter the Unicorn club in 2021. The company had raised $18.5 billion from its existing investors Faering, A91 Partners and TVS in January.

In its latest round of funding from existing investors Faering Capital as well as some new investors Sequoia Capital India and IIFL Alternate Asset Managers, the startup is raising $200 million. After this funding round, the company’s valuation will be doubled to $3.5 billion.

One of the biggest funding rounds in the Indian insurance sector, this funding round will take Digit’s total capital infusion to $442 million since its inception in October 2017. With this current valuation, Digit is India’s third most valuable Fintech startup leaving behind the big names like Razorpay and Pine Labs which were valued at $3 billion each earlier this year.

Why is Digit Raising Funds?

The major reason behind raising funds is to maintain solvency with an equity dilution of 5% in the recent fundraise. They will continue with their major focus being on simplifying insurance processes and increasing insurance penetration with the help of technology.

The major source of revenue is Digit’s Motor Insurance category. It brings around 75% of gross premiums. In the pandemic, the share of travel insurance fell but at the same time health insurance started rising up.

With this fundraising, it will incorporate newer health covering services in the account of a potential third wave of COVID-19 in India. The company is also planning to increase its Indian geography, expanding to tier II and tier III cities.

Plum Insurance, a Bengaluru-based enterprise focused group insurance platform helps modern enterprises provide group employee health benefits. Thanks to Plum, companies with even 5 team members can now get group health insurance. Plum’s USP is that they don’t harbour hidden costs or bombard customers with out-of-pocket expenses. SMEs and start-ups can now avail affordable insurance for their employees in less than 60 minutes. 

The start-up was quick to identify that Indian employees mainly belonged to the SME and start-up sector which became their prime area of focus. Essentially, Plum is enabling access to group health insurances for the SME and start-up community in the country. 

Plum Insurance recently raised a seed funding round from Sequoia Capital and have recently announced a month-on-month growth rate of 30%. 

How are they providing group health insurance to start-ups and SMEs in 60 minutes?

Plum Insurance is a new-age start-up that leverages smart underwriting and fraud detection algorithms in their technology product. They are creating an integrated digital insurance experience for customers. The technology product quickly understands the needs of a company and guides them through a set up process to avail group insurance for employees. 

Plum’s customers will also be able to file insurance claims without the need for intervention. Employees covered by Plum can enjoy doctor consultations, health check-ups, fitness and yoga, mental wellness, nutrition, and dental care. 

The platform has an intermediary registered with IRDA (Insurance Regulatory and Development Authority) as well as a broker registered for IAGIA.