Incorporated in December 2016, We are one of the leading digital full stack insurance companies, leveraging our technology to power what we believe to be an innovative approach to product design, distribution, and customer experience for non-life insurance products. Digital full stack insurance companies are licensed insurance operators or companies that have end-to-end digital capabilities and a digital first approach across customers’ insurance value chain. We offer motor insurance, health insurance, travel insurance, property insurance, marine insurance, liability insurance and other insurance products, which the customers can customize to meet his or her needs. The company has currently launched a total of 74 active products across all its business lines. As of December 31, 2023, the company had about 61,972 partners, including 58,532 POSPs and other agents. As of December 31, 2023, the company had a distribution centers in 24 states and union territories in India.
Company Products :
Promoters : Our Promoters are Kamesh Goyal, Go Digit Infoworks Services Private Limited, Oben Ventures LLP and FAL
Objects of the Offer :
Company proposes to utilize the Net Proceeds towards funding the following objects: Maintenance of solvency ratio ( around 1125 crore ).
Financial Information :
Company’s market share in Motor Insurance:
Company Expense & Commission Ratio:
Key Performance Indicator : The market capitalization of Go Digit IPO is Rs 24947 crore.
1. RoNW – 5.25%
2. Price to Book Value – 9.67
3. EPS – Pre-IPO of 0.41 RS and Post IPO of 1.88 RS4. P/E – 145.03 multiples
Company’s Strength :
1. Advance Technology Platform: Our technology enables us to achieve efficient underwriting, which is our differentiator among insurers. We build technology-enabled solutions and employ a hybrid model of AI-enabled analytics and human assessment to streamline the value chain, aid our customers, partners and employees and drive efficiency. Around the core of our technology platform, we have developed in-house microsystems, that allow us to facilitate a range of routine tasks, from policy design, underwriting, pricing and issuance to servicing and claims management. Our platform is entirely cloud-based, making our system agile, connected and scalable. Since the platform is entirely cloud based therefore it becomes cost effective.
2. Simple & Tailored Customer Experience : The customer experience is core to what we do. Insurance products have historically been hard to understand and sign up for, and making and settling claims has been cumbersome. We are dedicated to establishing trust and promoting transparency in our relationships with our customers by simplifying insurance and offering easy-to-understand, customizable products that enhance our customers’ experience
Company’s Weakness :
1. Company have a track record of reporting losses and, we may not be able to maintain profitability in the future. Our limited operating history makes it difficult to accurately evaluate our future business prospects.
2. Company rely on motor vehicle insurance products for a substantial amount of our revenues and profitability. Any constraint on sale of these products due to future changes in regulation or customer preference, or any inability to maintain a profitable portfolio mix of products, could have a material adverse effect on our business, financial condition, results of operations and prospects.
IPO Details :
My Viewpoint – One thing which separates Go Digit from other traditional general insurance companies is their entire platform is on cloud which makes this company cost effective, also the management of the company is highly experienced and within a short time span of six years company capture good market share in motor insurance and according to me this is one of the disadvantage also as majority of the revenue of the company (almost 61% ) comes from motor insurance. The other thing which I don’t like is the company started making profit only from the last quarter and before that company was continuously posted losses. One of the main point which stops me in applying for the IPO is its valuation, company competitors which are good brands and good market share are traded at very less P/E multiples as compared to Go Digit which ask P/E multiples of around 145. Therefore according to me if I have good option of general insurance companies which are continuously posted profits and traded at less valuations as compared to Go Digit then I will opt for those options not Go Digit.
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