Private lender Axis Bank Ltd on Tuesday said it will acquire up to 9.94 percent stake in Go Digit Life Insurance Ltd, a firm backed by Canada-based Fairfax Group. The lender said it has entered into an indicative and non-binding term sheet with the company.

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In an exchange filing on September 27, the bank said it will invest between Rs 49.90 crore and Rs 69.90 crore, in two tranches, to acquire the stake.

The company proposes to carry out life insurance business in India, subject to the grant of a certificate of registration by the Insurance Regulatory and Development Authority of India (IRDAI), Axis Bank said in a regulatory filing.

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Go Digit offers motor insurance, health insurance, travel insurance, property insurance, marine insurance, liability insurance, and other insurance products, to meet the needs of the customers.

It is one of the first non-life insurers in India to be fully operated on the cloud and has developed application programming interface (API) integrations with several channel partners.

The Bengaluru-based company has a track record of delivering growth with gross written premium (GWP) at Rs 5,268 crore, Rs 3,243 crore, and Rs 2,252 crore in financial years 2022, 2021, and 2020, with a compound annual growth rate (CAGR) of 53 percent from fiscal 2020 to fiscal 2022.

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Recently, HDFC Bank said it will pick up a 9.94 percent stake in Go Digit Life Insurance Ltd. The bank has entered into an indicative and non-binding term sheet with Go Digit Life Insurance, which summarises the principal terms of a proposed investment by HDFC Bank of between Rs 49.9 crore and Rs 69.9 crore, in two tranches, by subscribing to equity shares.

(Edited by : Shoma Bhattacharjee)