India’s capital markets regulator has moved Digit’s IPO application to “avoidance”, calling it a disappointing development for the online insurer’s plans to go public.
The Securities and Exchange Board of India (SEBI), India’s market regulator, has revised the status of Fairfax’s support figure to decline the review process for the startup’s filing.
The $3.5 billion Indian startup Sequoia Capital India, which counts TVS Capital, A91 Partners and cricketer Virat Kohli and actress Anushka Sharma among its backers, filed a red herring prospectus last month.
According to TechCrunch, the five-year-old startup is looking to raise about $440 million for its initial public offering.
SEBI did not explain why it had put Digit’s IPO application on the “downgrade”, but according to its guidelines, one of the reasons it takes this action is when there is “reason to investigate, investigate or inquire into the companies”. He said.
The remaining two reasons are: when the regulatory body fails to complete an investigation or inquiry “due to reasons beyond its control or the behavior of parties outside the organization” and when the board fails to complete its investigation period. to the conduct of bodies.
Digit sells auto, health and travel insurance and is part of a group of companies trying to expand the number of individuals buying insurance in India. Founded by Kamesh Goyal, a former KPMG executive with over three decades of experience in the insurance industry, Digit simplifies the insurance buying process by allowing users to self-check in, request quotes and submit service requests from their smartphones. He said in an application filed last month.
The startup, which distributes its insurance through 32,600 partners, including about 31,000 sales agents and brokers, posted a total revenue of $572 million and a loss of $37.29 million for the fiscal year ended in March.
SEBI’s move has seen several domestic startups, including budget hotel chain Oyo and financial services platform, delay their IPO plans as they closely monitor global market conditions, reversing much of their 13-year gains. A bull run. SoftBank-backed OYO has filed fresh documents for public disclosure, it said on Monday.
Digit did not immediately respond to a request for comment Monday.
