Digit Insurance, an India-based insurer, is reportedly considering raising $440m through initial public offering (IPO) at a valuation of $4.5bn to $5bn.
A report by Reuters has revealed that Digit is looking to capitalised on India’s “under-penetrated” general insurance market along with users’ need for a better customer experience, including better claim settlements.
According to the report, the company’s prospectus was filed on Tuesday and showed that the IPO will consist of a fresh issue of shares worth 12.5 billion Indian rupees ($158m). Large existing shareholder will also sell up to 109.4 million shares.
However, a source revealed that the sale will raise roughly $282m, hence bringing the total IPO size to around $440m.
Founded in 2017, Digit is a digital insurance firm that enables consumers to buy vehicle, travel, property, flight delay, health, mobile, holiday home and shop insurance. The India-headquartered company lets uses purchase policies, make renewals or complete claims through their mobile devices.
Reports first emerged about the possible IPO in May this year.
Morgan Stanley and local investment banks ICICI Securities, Axis Capital, Edelweiss Financial Services, HDFC Bank and IIFL Securities are managing the IPO.
Earlier this year, Digit reportedly raised INR 417 crore ($54.6m) in fresh funding, which brought its valuation to $4bn. The round was backed by Sequoia Capital and India Infoline.
Digit also raised a $70m funding round back in January 2022, with commitments coming from Wellington Hadley Harbor and Ithan Creek Master Investors. The InsurTech company became a unicorn in early 2021, after a $18.5m investment put its valuation at $1.9bn.
Elsewhere in the InsurTech and insurance industry, Thai Life Insurance is reportedly targeting a capital raise of $1bn through an initial public offering (IPO) in Thailand, it was revealed earlier this year. This would make the country’s largest such fundraise this year.
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