Go Digit hits second year of profit in FY24, shares surge

Go Digit General Insurance reported its second full year of profit in fiscal 2024, with net profit rising almost six times to Rs 182 crore from Rs 32 crore a year earlier. At almost 90%, the company also reported a healthy customer retention rate for the March quarter of 2024.

The news briefly sent the company’s shares up nearly 10% in early trade on Wednesday. The stock finally closed at Rs 341.75, up 1% from the previous day.

The Bengaluru-based insurance startup, which listed on the public markets last month, reported healthy business growth numbers in the fourth quarter of the last fiscal as well.


Here are the top four takeaways from the first quarterly results declared by the Fairfax-backed company after getting listed.

Strong growth in premium collection

In the last quarter of FY24, Go Digit reported Rs 2,336 crore worth of gross premium collected, up 19.4% from Rs 1,955 crore in the prior quarter. Overall, its premium collection for the full year stood at Rs 9,016 crore, up 24% from Rs 7,243 crore in FY23.

Interestingly, the growth primarily happened in travel, health and personal accident products, which grew 80% between the two financial years. Motor insurance, the mainstay of the company, saw slower growth in FY24 compared with FY23.

In terms of share of business in the last fiscal, motor insurance comprised more than 60% of its gross premium. Around 19% of premium came from travel and personal accident products.

Healthy growth in profits

Despite having a large network of physical and distributor agents, Go Digit General Insurance, which commenced opeartions in 2017, reported healthy financials, posting a net profit for the second consecutive year.

Profitable growth has stood Go Digit in good stead as the sector regulator also wants new generation companies to focus on their bottomlines while growing their business quickly, according to industry insiders.

“The pressure will be on competitors to start showing profits, and not only show growth in topline or premium collection,” said a founder of an insurtech startup on condition of anonymity.

Go Digit founder Kamesh Goyal had told ET during its IPO roadshows that the company did not look at technology as means to sell insurance to customers directly. Rather, it was the means to provide better service to customers.

Role of technology

Commenting on the role of technology in the insurance company’s journey, Go Digit said its total API integrations went up to 2,069 in the last fiscal year compared to 1,476 in FY23.

This number indicates that through these many partnerships, Go Digit can sell its insurance policies digitally. The company further added that 51% of its policies were sold via APIs, or direct integrations with its partners, cumulatively standing at 3.9 crore policies as of March 2024.