Private lenders are increasingly interested in India's lucrative and largely untapped sector, which has a non-binding term sheet by Indian private lender Ltd. The country's biggest private lender HDFC Bank plans to buy a 9.94% stake in Go Digit LifeDigit Life last month.
Digit, which already has a presence in the general business, is foraying into the life insurance segment with its Go Digit LifeDigit Life venture, but has not yet received a license for the unit.
In August, Reuters reported that Axis Bank's stake purchase would value the startup's upcoming life insurance business at $90 million. Axis offers some insurance products in partnership with Max Financial.
Go Digit General Insurance, Digit's general insurance business that is backed by Canadian billionaire Prem Watsa's Fairfax Group, had its initial public offering put on hold this month.