Insurtech Giant Go Digit Buys Stake in Dr Reddy's for Rs 30 Crore

Go Digit’s Strategic Investment

Go Digit, founded in 2017 by Kamesh Goyal, is a digital-first insurance provider that offers a wide range of non-life insurance policies across motor vehicle, health, travel, and property sectors. The company has been expanding its investment portfolio while maintaining steady growth in its core insurance business.

As of December 31, 2024, Go Digit’s assets under management (AUM) stood at Rs 18,939 crore. The company recently reported a 176.46% year-on-year (YoY) surge in profit after tax (PAT) to Rs 118.52 crore in Q3 FY25.

With this latest investment in Dr. Reddy’s, Go Digit has expanded its footprint in the healthcare sector, a move that aligns with its broader financial strategy of diversifying investments into stable and high-growth industries.

The acquisition does not fall under related-party transactions, and no regulatory approvals were required for the investment. Go Digit clarified that its promoter group or related entities may have independent business transactions with Dr. Reddy’s but that the stake acquisition was conducted at arm’s length.

Go Digit, competing with insurance providers like Acko, ICICI Lombard, Bajaj Allianz, and Tata AIG, has strategically diversified its investments by acquiring a stake in Dr. Reddy’s. This move reflects confidence in the long-term potential of India’s pharmaceutical market while aligning with Go Digit’s broader financial strategy.

The investment also highlights a growing trend among digital insurance firms leveraging surplus capital for high-growth sectors. While expanding its asset portfolio, Go Digit remains committed to scaling its core insurance business and maintaining a balanced investment approach.