New Delhi, June 5 -- Peak XV Partners, a Bengaluru-based venture capital and growth investing firm that has scored multibagger exits through listings of portfolio companies such as Meesho, Pine Labs and Wakefit over the past year, has monetized its investment in a financial services company that it backed nearly four years ago, booking a loss.

The firm, which has also been expanding its overseas portfolio with investments in London-headquartered payments infrastructure startup Primer and California-based startups Exaforce and Clouted, sold 3.33 million shares of Bengaluru-headquartered digital insurer Go Digit General Insurance Ltd in an open-market transaction on Thursday, according to stock exchange data.

It pocketed Rs 100 crore ($10.5 million) in the transaction.

Go Digit, which counts investors such as Canadian firm Fairfax, A91 Partners and Faering Capital among its backers, went public more than two years ago. Prior to its listing, Peak XV held a 1% stake in the company.

The investor has now cut its stake by a third, or 0.36 percentage points, as part of the secondary transaction, marking what is likely its first liquidity move in the listed insurance company.

However, the exit appears to have resulted in a 8.5% loss on a first-in, first-out basis. Peak XV invested Rs 297 crore in Go Digit in May 2022 at Rs 328 per share. At the time, Go Digit was valued at $3.58 billion. Peak XV cashed out on Thursday at Rs 300 apiece, implying a valuation of $3 billion for the insurer.

Peak XV declined to comment.

Go Digit made a lukewarm debut on the bourses in May 2024, with its shares listing at Rs 286 apiece, 5.15% higher than the issue price of Rs 272. While the stock continues to trade above its issue price, it remains about 20% below its 2024 peak.Over the past 12 months, it has lost 9%.

Go Digit General Insurance offers motor, health, travel, property, and other insurance products. It first filed its draft red herring prospectus for an IPO in August 2022. However, its plans were delayed after SEBI put the proposal in abeyance and raised concerns over the legality of some share issuances. The company refiled its documents in March 2023 after addressing the concerns and got final approval in March 2024.

Published by HT Digital Content Services with permission from VC Circle.