HDFC Bank, one of the major private sector banks, has become a party to an indicative and non-binding term sheet with Go Digit Life Insurance Ltd on Thursday. With an investment possibly ranging between ₹49.9 crore to ₹69.9 crores in two tranches to acquire a stake of 9.94% in the insurance company.
HDFC Bank said in a regulatory filing, “The Company proposes to carry out life insurance business in India, subject to the grant of certificate of registration by Insurance Regulatory and Development Authority of India.”
Go Digit General Insurance founded in 2017, offers insurance in the categories of motor, fire, health, and others. In the financial year 22, the insurance company booked a net loss of approximately ₹295 crores against revenue amounting to ₹5,267 crores.
According to the report of its DRHP, the company has a customer base of 2.57 crore and so far has sold over 77 lakh insurance policies. Having raised a total of $585.6 million (about ₹ 4,679 crores) in funding, Go Digit General Insurance has been supported by investors including Sequoia Capital India, TVS Capital, and Wellington Management.
