India-based InsurTech startup Digit Insurance has secured $44m in its second round of funding.
The investment was from Fairfax Holdings and was part of a $45m investment into Digit Insurance parent company Digit Infoworks. Of this injection, $44m was injected into the Digit Insurance division.
This deal marks the largest round into the general insurance ecosystem in India, according to the company. Following the round, Digit’s total equity financing has reached $94m.
The company is an online insurance platform which offers consumers in India with access to car, travel, mobile, and jewellery insurance policies. There are a handful of other protections in its pipeline, including bike, health and home insurance.
Digit has formed partnerships with companies like Flipkart, PayTM, Cleartrip, Sterling Holidays, SOTC, Policy Bazaar and Tanishq, to offer unique product types. These include screen damage for mobile phones, and flight delay cover.
Through the new capital, Digit will look to invest into its technology and launch new lines of products. Proceeds will also go towards expanding its distribution network across India.
Digit Insurance founder and chairman Kamesh Goyal said, “Our long-term investment is directed towards bringing in technology that can automate & fasten processes and resolve customer pain points. For example, 100% of our flight delay claims are automated & claims are processed in minutes; 87% of our claim approvals happen in just 24 hours due to innovations like smartphone-enabled self-inspections.”
India’s FinTech sector is the largest in Asia, having raised a total of $7.3bn last year, $5bn more than China which is the region’s next biggest market, according to data by FinTech Global.
This interest is not slowing, with a number of venture firms showing their interest in the country by launching new funds dedicated to its market. SRI Capital recently raised $100m for its maiden fund which is focused on supporting opportunities in the US and India.
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