Go Digit’s IPO mirrors the underwhelming reality of insurtech disruption

Often, investors mistake their FOMO about an initial public offering (IPO) for the sustainable story of the company or its sector. With insurtech unicorn Go Digit going public late last week, it’s worth asking whether all is indeed well with the state of online insurers in India. Have they managed the disruption they promised and succeeded in pushing the insurance space into the digital era? Or, conversely, have they simply become that which they set out to upend?

Founded in 2016, Go Digit is India’s earliest insurtech company. However, despite elbowing its way into the ranks of India’s leading general insurers (it is also the fastest-growing), its IPO on May 23 flattered to deceive. The company’s stock debuted at just a 5% premium to its listing price on the National Stock Exchange (NSE). 

This is despite the company turning profitable in FY23 and being backed by the Fairfax Group and an insurance veteran. 

Indeed, Go Digit’s IPO, which was meant to signal the coming-of-age of India’s insurtech space, may have inadvertently highlighted the space’s shortcomings instead.