Axis Bank, HDFC Bank invest in IPO-bound GoDigit’s life insurance business

GoDigit Life, the life insurance business of GoDigit Insurance has raised equity funding from two major private sector lenders Axis Bank and HDFC Bank. In an exchange filing on Saturday, both banks said that they have signed definitive agreements with GoDigit Life Insurance to invest around Rs 70 crore each over two tranches.

The first tranche of Rs 10.9 crore has already been infused, they said.

The two banks have will acquire around 9.9% of the life insurance company, taking their total shareholding to almost 20%.


GoDigit is yet to receive a final nod from the insurance regulator for its life insurance license. On March 31, the Insurance Regulatory and Development Authority of India (IRDAI) granted new-age insurer Acko a licence to operate a life insurance business, along with a nod to microfinance company Credit Access to commence a life insurance business.

The second tranche of the investment for GoDigit Life is subject to meeting the requirements as agreed between the two parties, the banks said.

Industry insiders said that once GoDigit receives its in-principle approval from the regulator, the rest of the capital will be invested. GoDigit Life reported zero revenue and a loss of Rs 5.3 crore as on March 31, 2023. Its net assets stood at Rs 26.4 crore.

GoDigit’s Life’s parent entity GoDigit has been in the process of trying to go public for more than a year. Sebi put its $440 million IPO in "abeyance" in September last year over compliance issues around the distribution of employee stock plans (Esop). Earlier this month, it refiled for its IPO.