Axis plans to take a 10% stake in the start-up’s upcoming life insurance business for about $9 million, effectively valuing the business at $90 million, said two sources, who spoke as of Refused to be named, they were private.
comes after the trick Indialargest private lender of
In a stock exchange disclosure last week, it said it plans to buy a 9.94% stake go digit life Up to 700 million rupees ($9 million).
Start-up Digit, which already operates in the general insurance business, is entering the life insurance market with its “Go”. score Life” Enterprise.
A Digit spokesperson declined to comment, saying the company is yet to get a license for its life insurance business. Axis did not respond to Reuters’ request for comment.
Go Digit General InsuranceDigit’s general insurance business is said to be valued at $4 billion and is backed by Canadian billionaire Prem Vats and Sequoia Capital, It offers products such as health, travel and automobile coverage.
Axis’s plan underlines the growing interest of private lenders in India’s lucrative insurance business, a source said, adding that the partnership with Digit could help Axis meet its insurance ambitions.
India’s life insurance market, the world’s tenth largest, remains largely untapped. According to data from India’s insurance regulator, life insurance penetration – measured by the country’s life insurance premiums as a percentage of its GDP – rose to 3.2% in FY21, up from 2.15% two decades ago. A little more than . ,
While Axis currently offers some insurance products in partnership with
The Digit deal could give Axis a better understanding of the online insurance industry and allow it to improve access to insurance customers with its own banking offerings, the source said.
Insurance companies in India are increasingly wooing customers with online offers, promising instant policy issuance and easy claims. Selling insurance through traditional agents is popular in India, especially in smaller cities.
Go Digit General Insurance recently filed papers to raise at least $440 million through an initial public offering, at a valuation of $5 billion. Its founder Kamesh Goyal is an industry veteran who previously led Germany’s Allianz’s India joint venture.