Go Digit, the insurtech startup that recently made its debut on the Indian stock exchanges, has showcased remarkable growth in its financial performance for the fiscal year 2023-24 (FY24). With a focus on expanding its premium base and enhancing customer satisfaction, Go Digit has achieved significant milestones, as reflected in its latest financial results.
Phenomenal Profit Growth
Go Digit’s profit after tax (PAT) witnessed an impressive surge, soaring over 400% to INR 182 Cr in FY24 from INR 36 Cr in the preceding fiscal year. This exponential growth underscores the company’s robust business model and strategic initiatives aimed at driving profitability.
Robust Gross Written Premium (GWP)
Driven by substantial growth across key insurance segments such as health, travel, and personal accident, Go Digit’s total gross written premium (GWP) reached an impressive INR 9,016 Cr in FY24, marking a notable increase of 24.5% from INR 7,243 Cr in FY23. This uptick in GWP underscores Go Digit’s growing market presence and strong customer demand for its insurance offerings.
Diversification and Contribution
Third-party motor insurance premiums remained the primary contributor to Go Digit’s GWP, accounting for 39% of the total, followed by own damage motor insurance premiums at 22%. Health, travel, and personal accident premiums collectively contributed 19% to the total GWP in FY24, reflecting the company’s diversified revenue streams and balanced portfolio.
Financial Highlights
Go Digit’s net earned premium surged to INR 7,096 Cr in FY24, compared to INR 5,164 Cr in FY23, indicating sustained growth in its core business operations. Additionally, the company reported a total income of INR 8,443 Cr in FY24, up from INR 5,780 Cr in the previous year, driven by income from investments and other revenue streams.
Operational Efficiency and Asset Management
Maintaining a premium retention ratio of 85.8% in FY24, Go Digit demonstrated operational efficiency and effective risk management practices. Moreover, the company’s assets under management increased significantly to INR 15,764 Cr as of March 31, 2024, highlighting its robust financial position and prudent asset allocation strategies.
Expense Analysis
While Go Digit’s total expenses witnessed a moderate increase, primarily driven by higher claims paid and employee costs, the company achieved significant cost savings in advertising and promotional expenses, reflecting its focus on optimizing operational efficiency and resource utilization.
