Insurtech Giant Go Digit Buys Stake in Dr Reddy's for Rs 30 Crore
With this latest investment in Dr. Reddy's, Go Digit has expanded its footprint in the healthcare sector.
Mumbai: Insurtech company Go Digit General Insurance Limited has made a significant investment of Rs 30.06 crore in leading pharmaceutical company Dr. Reddy's Laboratories, acquiring a 0.32% stake in the company.
In a disclosure filed with the Bombay Stock Exchange (BSE) and National Stock Exchange (NSE), Go Digit stated that the investment was made on February 25, 2025, as part of its routine investment strategy. “The investment in shares is being made in the ordinary course of the investment function of the company,” Go Digit mentioned in its regulatory filing.
Dr. Reddy’s Laboratories, founded in 1984, is one of India's leading multinational pharmaceutical companies. It offers a wide range of products and services, including Active Pharmaceutical Ingredients (APIs), custom pharmaceutical services (CPS), generics, biosimilars, and differentiated formulations.
According to its latest financial report, Dr. Reddy’s reported a turnover of Rs 28,011 crore for the financial year 2023-24, up from Rs 24,670 crore in 2022-23 and Rs 21,545 crore in 2021-22. The company has a strong presence in global markets, including the US, Europe, and emerging economies.
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.
