Peak XV sold 57.2 Lakh shares of Go Digit for ₹243 each to rake in the amount. The shares that flooded the market were lapped up by ICICI Prudential Mutual Fund
Peak XV is trimming its stake in Go Digit because the VC giant sees better uses for the capital or wants to reduce exposure after the stock’s weak run
This comes a month after Peak XV offloaded a part of its stake in the insurtech platform in a ₹100 Cr block deal
For the second time in two months, early backer and VC giant Peak XV Partners has offloaded shares worth nearly ₹139 Cr in listed insurtech company Go Digit via a block deal.
As per NSE data, Peak XV sold 57.2 Lakh shares of Go Digit for ₹243 each to rake in the amount. The shares that flooded the market were lapped up by ICICI Prudential Mutual Fund.
The block deal was executed at a discount of 4.1% to the stock’s last closing price on Wednesday.
Notably, this is not the first time that Peak XV is offloading a part of its stake in the company in recent months. In June, the VC giant sold Go Digit shares worth ₹100 Cr in a block deal.
The development comes a day after the Competition Commission of India (CCI) approved the proposed amalgamation of the insurer’s holding entity Go Digit Infoworks Services Pvt Ltd with Go Digit General Insurance. The latter will now be the sole surviving entity, the regulator said in a release.
The block deal comes amid a sell-off in Go Digit shares. On July 28, the stock hit an all-time low of 245 on the BSE. The stock has declined nearly 21% in the past month and is down 26.7% on a year-to-date (YTD) basis.
The sell-off has come on the back of multiple headwinds. In March this year, the startup received a tax demand notice totalling ₹384.4 Cr from the Income Tax (IT) department for the assessment year 2023-24 (AY24). Piling on top of this has been Go Digit’s recent subdued financial performance.
The insurtech platform’s profit slumped 37.5% to ₹86.4 Cr in Q1 FY27 as against ₹138.3 Cr in the year ago quarter. Meanwhile, the company’s gross premium written also tanked 8.4% to ₹2,730.9 Cr from ₹2,981.8 Cr in Q1 FY26.
Founded in 2017 by Kamesh Goyal, Go Digit is a full-stack digital insurance company that offers a wide range of insurance policies across sectors such as motor vehicle, health, travel, property, among others. It has raised more than $462 Mn in funding to date and counts names such as Faering Capital, Wellington Management and TVS Capital Funds as backers.
Shares of Go Digit General Insurance closed Wednesday’s trading session 3.15% higher ₹253.4 on the BSE.
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