INNOVATION AND ENTERPRENEURSHIP

ASSIGNMENT 1
ON
DIGIT- A FINTECH COMPANY

SUBMITTED BY:
ADITYA GUPTA
80012201144
H273
DIGIT GENERAL INSURANCE

( BOARD OF DIRECTORS)

Kamesh Goyal
Chairman & Founder

Philip Varghese
Director – Go Digit Infoworks Services Private Limited

Jasleen Kohli
MD & CEO

Adarsh Kishor Agarwal

Chief Distribution Officer

Ravi Khetan
Chief Financial Officer

Parimal Heda
Chief Investment Officer

Rajeev Kumar Singh

Chief Risk Officer
 Origin and Initial Concept
Initial idea or problem the founders aimed to solve:

Slices from loaves of bread were previously required. Unlike the slices of today, it wasn't simpler.
Those unsliced loaves are what many think insurance is like. Additionally, customers are
unaware of which plans are best for specific individuals. This is a mindset that can be altered,
according to the organization. Taking a step back to more straightforward and straightforward
insurance solutions, Digit Insurance began to simplify insurance with this in mind. Easy means no
complicated regulations. Since the business only needed a straightforward name, it decided that
digit was the ideal choice. The company needed a simple name and hence it found the name
digit to be perfect and appropriate for them.

Inspiration and circumstances leading to the startup's inception:

They think that the way insurance products are perceived, bought, and claimed may be altered.
Our mission is, to put it simply, "To Make Insurance Simple."

They are rethinking procedures and goods with that as their goal. They are reverting to the
fundamentals and creating straightforward insurance solutions that are important to consumers.

Furthermore, simplicity entails clarity; there are no complicated regulations or hidden clauses. If
we couldn't provide a better product or a flawless customer experience, they wouldn't want to
launch a product. We are convinced they can do both in most circumstances. Their insurance
policy leaves no room for exceptions. There are many things to take into account while selecting
an insurance provider. In addition to premium, coverage, and customer service, what about the
company’s track record? How long has the company been in operation? The most crucial factor is
how well they treat their clients.

When looking for the best insurance provider in India, we put these questions to the test. And
after a thorough search, we discovered that Digit Insurance was the undisputed champion.
Although Digit is a young business, they have already had a significant impact on the Indian
insurance sector.

They have quickly risen to prominence as one of the most well-liked insurance providers in the
nation. Mumbai, India serves as the company’s corporate headquarters. Their success is due to a
few factors. They start by having some of the most affordable pricing on the market. Second,
clients can always find a convenient location for treatment because to their vast network of
partnered hospitals and clinics.
Every encounter we had with their staff was kind and professional. When we had queries or
issues, they were always quick to answer. Additionally, they made the claim filing process as
simple and hassle-free as they could.

We were impressed by all Digit Insurance has to offer, to put it briefly. We heartily recommend
Digit Insurance if you’re seeking an insurance provider who will give you security, fantastic
coverage, and top-notch customer care.

Every interaction we had with their employees was polite and competent. They were always fast to
respond to our questions and concerns. They also tried to make the procedure of filing a claim as
easy and hassle-free as possible.

To sum up, we were impressed by all Digit Insurance has to offer. If you're looking for an
insurance company that will provide you with security, excellent coverage, and first-rate customer
service, we wholeheartedly recommend Digit Insurance.

Location where the company began.

BENGALURU

Initial Funding and Early Growth

TRANSACTION MONEY
DATE LEAD INVESTORS
NAME RAISED
January Wellington Hadley Harbor and
Venture Round $70 million
18, 2022 Ithan Creek Master Investors.
August $16.09
Venture Round TVS Capital Funds
26, 2021 million
Sequoia Capital India, IIFL
July 2,
Venture Round $200 million Alternate Asset Managers,
2021
Faering Capital and more
January $18.77 A91 Partners, TVS Capital,
Venture Round
16, 2021 million Faering Capital
January A91 Partners, Faering Capital,
Venture Round $84 million
21, 2020 TVS Capital Funds
June 5,
Venture Round $50 million Fairfax Financial Holdings
2019
July 3,
Venture Round $45 million Fairfax Financial Holdings
2018
June 1,
Venture Round $47 million Fairfax Financial Holdings
2017
Details of initial funding: sources, amounts, and valuation. Digit Insurance funding has seen it
rise to unicorn status in 2021. The company has raised around $530.8 million in funding over the
8 funding rounds that it saw. The latest funding round that Digit witnessed on January 18, 2022,
came from Wellington Hadley Harbor and Ithan Creek Master Investors, where the company
raised $70 mn.

According to the PR released by Digit Insurance, dated July 2, 2021, the Founder and
Chairman of the company, Kamesh Goyal has announced Digit's new fundraising round
where the company would raise up to $200 million. The investments of this new round would
be led by Sequoia Capital India, IIFL Alternate Asset Managers, and existing investor
Faering Capital among others, as per the updates. This round made the total capital infused
into the company $442M and is believed to be one of the biggest funding rounds in the history of
the Indian insurance industry. With this fundraising round, Digit Insurance was valued at $3.5B.

According to news dated August 26, 2021, Digit Insurance again raised a sum of ($16.30 mn)Rs
121 crores in a round sponsored by TVS Growth Fund and other high net worth individuals.
However, the company's most recent fundraise of $200 million had not yet reported to the Ministry
of Corporate. According to recent regulatory filings, Digit allegedly passed a special resolution to
raise the funds by issuing 38,47,427 equity shares at an issue price of Rs 314 per share. The current
valuation of the company is estimated at $3.54 bn, as of January 2022.

Digit Insurance is funded by 4 lead investors. IIFL Asset Management and Faering Capital are the
most recent investors of the firm.

Early milestones and growth indicators. Early on, Digit was able to obtain The business,
which is funded by Canadian billionaire Prem Watsa's Fairfax Group in addition to Virat Kohli,
has explored raising $500 million in an IPO at a valuation of $4.5 to $5 billion. The book runners
are ICICI Securities and Morgan Stanley. According to insiders who asked to remain anonymous,
the company hopes to list by January 2023 and the drafting paperwork would probably be
submitted to the market regulator by September. Additionally, according to these sources, Digit
Insurance hopes to generate about Rs 4000 crore through an initial public offering. The company
from 2019 to 2020 has witnessed an 87% of growth in premiums. It has earned massive trust from
the customers and is looking forward to a good customer base along with the 1.4 crores of existing
customers. Digit Insurance is currently eyeing to cross the Rs 6,500 crore-mark in its premia sales
when it will be completing its 5 years of operation in October 2022.
Significant pivots or strategy changes in the early stages.

Digit from the beginning was certain that they wanted to make insurance easier to understand,
more accessible, and available in an easy way. As a result, they wanted to digitize the entire
insurance process from the old method to the new method. Their strategy, which included
product, price and distribution, risk assessment, and marketing, was to concentrate on making
things simple to understand. As a result, they moved all distribution channels to online
platforms.

Expansion and Scaling Up:

Overview of subsequent funding stages. With eight investment rounds, Digit Insurance raised
over $530.8 million to become a unicorn in 2021. Wellington Hadley Harbor and Ithan Creek
Master Investors contributed $70 million to the most recent investment round, which was
completed on January 18, 2022. Among the notable investment rounds are the $200 million round
that led by Sequoia Capital India, IIFL Alternate Asset Managers, and Faering Capital on July 2,
2021, which valued Digit at $3.5 billion. With a current estimated valuation of $3.54 billion as of
January 2022, investors including TVS Capital Funds and Fairfax Financial Holdings supported
the company's expansion in multiple rounds.

Expansion into new markets or product lines.

Digit provided insurance for motorcycles and two-wheelers. Additionally in Vehicle Insurance
for Commercial Use, Rickshaw and Taxi Insurance, and Auto Insurance However, they began
producing products like Policy for Corporate Health Insurance in order to broaden the selection of
health insurance plans. Look for household liability insurance and Arogya Sanjeevani Health
Insurance Portability Alternative International Travel Insurance.
Key investors and their impact on th Investments made:

Virat Kohli and Canadian billionaire Prem Watsa's- backed Fairfax Group, Faering
Capital, TVS Capital Funds are major investors in digit. The company has looked into
obtaining $500 million through an initial public offering (IPO) at a valuation of $4.5 to $5
billion.
Unique Selling Proposition and Strategy

What sets this company apart from its competitors?

The two extremes of the general insurance market: insurtech startups and established businesses.
Only then will we move on to a competitive study of the various players across the main metrics
and how they have developed in relation to Digit Insurance.
As more and more fintech companies recognize the revenue potential, the insures landscape is
expected to shift quickly. Despite the existence of a specific insurance regulatory authority in
the Insurance Regulatory and Development Authority of India (IRDA), the RBI's stricter rules in
areas like lending and neo banking make insurance something of a safe haven.

Its mandate includes increasing penetration beyond merely keeping an eye on insurance players'
activity.

Another digital-first, new age player is Acko, a unicorn insurtech company situated in
Bengaluru, which is similar to Digit Insurance. Both have made an effort to delve further into
the main general insurance categories of health, property, and employee insurance plans in
addition to auto and health insurance.

Another cutting-edge fintech business with an insurance license is Navi Technologies, owned
by Sachin Bansal, which has been gradually increasing its market share among insurtech
companies. According to its filings, the fintech behemoth Paytm is also getting into the game
and intends to invest up to INR 950 Cr over the next ten years. We'll examine in more detail
The competition from long-standing incumbents and bank-backed insurers will be Digit
Insurance's main obstacle, as discussed with the insurtech players later in the piece. Well-
known incumbents and bank-backed insurers, such as ICICI Lombard, SBI General Insurance,
Edelweiss, Bharti AXA, Bajaj Allianz, and independent health insurer Star Health and Allied
Insurance, present fierce competition for Digit Insurance. In contrast to the quickly expanding
non-life segment companies like Go Digit and Acko, both of which received their insurance
licenses at the same time, Digit is challenging the traditional sales model despite being smaller in
scale.

Overview of the business model and revenue streams.

The Digit Insurance business model works just like the business models that the insurance
companies opt for, the only difference is that Digit aims to introduce a range of new products
and services to disrupt the Indian general insurance sector. It holds a general insurance license,
which allows the company to sell health insurance products. Car and home insurances are
common but Digital Insurance provides jewellery and mobile insurances as well.
Furthermore, the company is redefining the insurance industry by working digitally. Its business
strategy is to create beneficial partnerships with various companies.
Among various other insurance plans, Digit is one of the insurance companies that launched Go
Digit Covid insurance. The coronavirus health insurance of the company is similar to a customized
health insurance policy, which helps to cover the hospitalization and treatment costs of the Covid-
19 infected persons who have previously registered with Digit.
 Marketing and growth strategies.

In the current era, insurance companies are facing tough competition and
are looking for ways to stand out. One way to do this is by offering
innovative and customer-centric products. Digit Insurance is one such
company that is using technology to provide a better customer experience.

Digit Insurance offers a unique marketing strategy that helps it to connect

with its target audience. The company makes use of both online and offline
channels to reach its customers. It has a strong online presence and uses
social media platforms to connect with its customers. It also has a team of
dedicated customer service executives who are always available to resolve
queries.
The company has a simple and user-friendly website that helps customers to understand its
products and services easily. It also offers a mobile app that makes it easy for customers to buy
and manage their policies. The company offers a range of insurance products such as health
insurance, travel insurance, car insurance, and home insurance.

Digit Insurance is a customer-centric company that is always looking for ways to improve its
products and services. It is constantly innovating and introducing new products to meet the
changing needs of its customers. The company has a strong focus on technology and is always
looking for ways to use it to improve the customer experience.

Marketing and Advertising Campaigns of Digit Insurance

There’s no doubt that digit insurance is one of the most innovative companies in the insurance
space. Their marketing and advertising campaigns are top-notch and always generate a lot of
buzzes.
One of their most recent campaigns is the #DontBeANumber campaign, which encourages
people to switch to Digit and get a personalized insurance experience.
The campaign has been a huge success and has resulted in a lot of new customers for Digit. If
you’re looking for an insurance company that is on the cutting edge of marketing and
advertising, Digit is the company for you.
SEO of Digit Insurance
Godigit Ranking
Ranking websites aids in determining a business’s worth. The global rating of godigit.com has
dropped from 15,040 to 15,496 over the past three months.
 Content Marketing of Digit Insurance

Digit Insurance is a leading digital insurance company in India that offers insurance products
and services online. The company has been able to create a strong online presence and reach out
to a large customer base through its content marketing efforts.
In this case study, we take a look at how Digit Insurance has used content marketing to build its
brand and drive business growth.Digit Insurance’s content marketing strategy has revolved
around creating quality, informative, and engaging content that educates and informs its target
audience about insurance products and services. The company has used a mix of content
formats, including blog posts, infographics, videos, and e-books, to effectively reach its
audience.
Through its content marketing efforts, Digit Insurance has been able to establish itself as a
thought leader in the insurance space and build a strong online presence. The company has also
seen a significant increase in web traffic and leads.

Challenges and Setbacks: Acko, Coverfox, and PolicyBazaar are the company’s main rivals. The
main rival of Digit Insurance is Acko. It was established in 2016 in Mumbai. It also functions in the
insurance sector. One of Digit Insurance’s biggest rivals is Coverfox. It was established in
2013 and has its headquarters in Maharashtra, India’s Andheri East. Additionally, it works in the
insurance industry.

Another fierce competitor of Digit Insurance is PolicyBazaar. Its corporate headquarters are in
Gurgaon, Haryana, India, where it was created in 2008. The business is a competitor in the
insurance industry.
 Major challenges and how the company addressed them

Resilience and adaptability in facing setbacks. Digit insurance is a type of insurance that
helps you to insure your digital assets. This type of insurance is very important in today’s world
where our lives are increasingly dependent on digital devices and services. There are many
solutions that digit insurance offers to its customers. Some of the most popular solutions are:

1. Data backup and recovery: This solution helps you to back up and recover your
data in case of any loss or damage.
2. Device protection: This solution helps you to protect your devices from any type
of loss or damage.
3. Identity theft protection: This solution helps you to protect your identity from
any type of theft or fraud.
4. Malware protection: This solution helps you to protect your devices from any
type of malware or virus.

Current Status and Future Prospects According to reports between FY19 and FY22, the
gross premium for insurance, the auto insurance industry is not growing, but in 2021 things will
return to normal and the industry will develop alongside other industries. Despite the fact that
the Covid-19 crisis severely hurt the sector and caused a sharp decline in interest rates, people's
panic led them to get Covid health insurance, which allowed the insurance market to develop
faster than anticipated.

Current company size, valuation, and market presence. Digit Insurance claimed to have
more than 1.5 crore subscribers since its founding and reported a 31.9% growth in revenue from
April 20 to December 20, generating a premium of $186 million. Digit Insurance revealed that it
has raised $442 million in total following the conclusion of its most recent funding round in July
2021, during which the firm had chosen to raise $200 million.

The corporation had a 30% growth in business in

2020. The company's expansion was aided by two
significant products. Fire insurance is the other, and
Covid health insurance is the first. As a result of the
aforementioned circumstances, the company's
premium collection saw significant growth. Since its
founding, the company has seen a significant increase
in its gross written premiums, which were reported at Rs 5268 crore in the financial year.
 FUTURE PLANS AND DIRECTIONS OF DIGIT:

The premiums for the corporation increased by 87% between 2019 and 2020. Along with
the 1.4 crores of current clients, it has gained a great deal of customer trust and is anticipating a
strong customer base.
When Digit Insurance completes its first five years of business in October 2022, it plans to
have premium sales of over Rs 6,500 crore.

ANALYSIS AND LEARNINGS:

Product Strategy of Insurance:

A product strategy is a plan for how a company will create, deliver, and market its products or
services. It’s a vital part of a company’s overall business strategy.
The product strategy of Insurance is to provide affordable, simple, and convenient insurance
products that meet the needs of our customers.
We want to make it easy for our customers to understand and purchase our products, so we
offer a variety of channels for them to do so. We have an extensive online presence, including a
website and blog, as well as a growing social media presence. We also have a team of insurance
experts who are available to answer any questions our customers may have.
We are constantly innovating and improving our products to make sure they are the best they
can be. We listen to our customers and take their feedback into account to make sure we are
always meeting their needs.

Price Strategy of Insurance:

Price is one of the most important aspects of any insurance product. And when it comes to
Insurance, we have a very simple and straightforward price strategy.

We want to offer our customers the best possible value for their money. That’s why we offer a
variety of insurance products at a variety of price points. And we are constantly working to
improve our products and services so that we can offer even better value to our customers.

Of course, we also want to be profitable so that we can continue to grow and provide even more
value to our customers. But we always keep our customers’ best interests at heart, and we
believe that our pricing strategy reflects that.
Place & Distribution Strategy of Insurance:

As the world goes digital, so does the insurance industry. And one company that is leading the
way in digitizing insurance.
Based in India, Insurance is a cutting-edge insurance company that offers a range of innovative
insurance products, all of which can be purchased and managed entirely online. One of the
stand-out features of Insurance is its distribution strategy. Rather than relying on traditional
insurance brokers and agents, Insurance has built a vast network of online partners that sell and
promote its products.

This means that customers can purchase Insurance products from a wide range of websites and
apps, without ever having to speak to an insurance agent. What’s more, this distribution strategy
also allows Insurance to reach a far wider audience than traditional insurance companies. And
with more and more people moving online for their insurance needs, this is a huge advantage.

Promotion Strategy of Insurance:

As we all know, insurance is a necessary evil. We need it to protect ourselves and our loved
ones, but it can be a pain to keep up with. There are so many different types of insurance and it
can be hard to keep track of them all. But one type of insurance that you may not have thought
about is digit insurance.

It is a new type of insurance that is becoming increasingly popular. It is a type of insurance that
you can purchase online and is designed to be more affordable and convenient than traditional
insurance.
Here are some tips on how to promote digit insurance:
1. Use social media to your advantage.
Social media is a great way to reach a large audience with your message. Use platforms like
Twitter, Facebook, and Instagram to post about the benefits of digit insurance. Make sure to
use hashtags and target your posts to a specific audience.

2. Collaborate with other brands.

One way to reach a wider audience is to collaborate with other brands. Find brands that have a
similar target audience and see if they would be interested in partnering with you. This could
involve cross-promoting each other’s products or services.
 Revenue Streams of Insurance:
The majority of Insurance’s earnings come from its commercial line of goods, which includes
its insurance plans and premiums. The general insurance company offers a variety of health,
auto, and travel insurance coverage. When it was last recorded in October 2021, the digit
totaled $400 million in annual premiums.

Channels of Insurance:
In terms of desktop visits last month, search traffic accounted for 79.18% of all traffic to
godigit.com, and direct traffic came in second with 17.14%. Ads are the most underused
channel. Investigate the primary movers in each of the channels below.

Analysis of the company's success factors.

Digit Insurance had a 56% increase in its consolidated revenue from operations in FY21,
bringing the company's total consolidated revenue to Rs 2324 crore for the same fiscal year.
Additionally, Digit's expenses increased dramatically; in FY21, they were Rs 2358 crore, up
from Rs 1619 crore in FY20. However, Digit's net loss decreased from Rs 193 crore in FY20
to Rs 58.67 crore in FY21, bringing the business one step closer to profitability.

Lessons learned and potential applications.

India's insurance market is booming at a rate never seen

before, thanks to the country's fast developing middle class,
rising knowledge of the value of insurance, and burgeoning
economy.Due to the country's fast increasing economy,
rising middle class, and growing knowledge of the value of
insurance, the insurance industry in India has been
booming at a rate never seen before. This has led to an increase in the need for insurance-
related specialists, providing young and gifted people with a plethora of career options.
 BIBLIOGRAPHY

 https://bfsi.economictimes.indiatimes.com/blog/insurance-in-india-current-trends-and-whats-
ahead/93525208

 Digit Insurance: Car, Bike, Health & Travel Insurance Online (godigit.com)

 https://www.godigit.com/motor-insurance/car-insurance.