Insurtech company Go Digit buys stake in Dr. Reddy’s Lab for Rs 30 crore

26 Feb 2025, 08:07 PM

The investment in shares is being made in the ordinary course of the investment function of the company, Go Digit said.

Team Head&Tale

Insurtech company Go Digit has invested Rs 30 crore in Dr. Reddy’s Laboratories. The startup is acquiring a 0.32% stake in the pharmaceutical major.

“The investment in shares is being made in the ordinary course of the investment function of the company,” Go Digit said in an exchange filing. 

Established in 1984 by Kallam Anji Reddy, Dr. Reddy's Laboratories is an Indian multinational pharmaceutical company that manufactures and markets medicines. It  provides a portfolio of products and services, including active pharmaceutical ingredients (APIs), custom pharmaceutical services (CPS), generics, biosimilars and differentiated formulations.

Founded in 2017 by Kamesh Goyal, Go Digit is a full-stack digital insurance company that offers a wide range of non-life insurance policies across sectors such as motor vehicle, health, travel, and property, among others.

Go Digit General Insurance reported a total income of Rs 2,175 crore for the second quarter of fiscal year 2024-25, compared to Rs 1,868.5 crore in the same period last year.

However, the insurer’s total expenses jumped to Rs 2,136.05 crore in Q2 FY25, compared to Rs 1,876.54 crore for the same period last fiscal.

The company’s profit after tax jumped 221.4% to Rs 89 crore from Rs 28 crore in Q2 FY24.

In terms of customer retention, the premium retention ratio, which indicates the firm's ability to retain business, decreased to 81.4% during the quarter – down from 87.8% a year earlier.

In terms of claims, the company paid out Rs 851 crore in claims during Q2 FY25, up from Rs 763 crore in Q2 FY24. There was also a change in outstanding claims, with an increase to Rs 483 crore in Q2 FY25 compared to Rs 315 crore in Q2 FY24.

The motor insurance segment remained the largest contributor to Go Digit’s overall business. It posted premiums of Rs 1,354.21 crore in Q2 FY25 as compared to Rs 1,228.65 crore in Q2 FY24. Whereas, premiums of the health group and corporate insurance segment reached Rs 332.45 crore – up 25.24% from Rs 265.46 crore in Q2 FY24.