wefox announced the closing of a $400m Series D funding round
By Joy Dumasia
wefox, the Berlin-based insurtech, has successfully closed a Series D funding round of $400m (comprising equity and debt) and increased its post-money valuation to US$4.5b. Mubadala Investment Company led the equity raise with participation from Eurazeo, LGT, Horizons Ventures, OMERS Ventures and Target Global. The round sees wefox increase its valuation from $3b to $4.5b in 12 months, bucking the trend currently experienced in the insurtech market and more broadly across the tech sector.
Julian Teicke, CEO and Founder of wefox, said: “This new valuation of US$4.5 billion is a clear validation of our business model, which focuses on indirect distribution via agents rather than direct. This makes our business one of the most credible insurtechs in the market right now. We continue doubling our revenues with last year reaching US$320m. Within the first four months of this year, wefox generated more than US$200m in revenues, which keeps us on track to achieve our revenue target of US$600m by the end of 2022.
wefox now has more than two million customers, and we aim to reach three million customers by the end of this year. It is further proof that wefox is trusted and a testament to our focus on prediction and prevention rather than the traditional repair and replacement approach. We are making insurance 10 times better through technology. As a result, our customer experience is simple and fit for purpose for the way we live today.”
wefox intends to use the funding for product development and expand across Europe and, thereafter, Asia and the US. Despite the current economic climate, wefox remains one of the few tech companies still recruiting, with more than 1300 employees in the company today, up from 550 employees in 2021. wefox expects to reach 2000 employees by the end of 2022.
Fabian Wesemann, CFO and Founder of wefox, said: “wefox is in the strongest position ever. In successfully closing this funding round, we reinforce our strategy and enable faster acceleration on our path to greater revenues and profit.
This additional investment is a strong validation from the investor community of our indirect model, which allows us to be cash efficient and is another testament to our continuous performance even in turbulent times. wefox has a proven model and a sustainable track record to replicate globally, for which the additional funds will be used. Our model ensures we deliver a stronger financial profile with a clear path to profitability. This is vital at all times but especially in the current economic climate which demands greater financial discipline.”
Ibrahim Ajami, Head of Mubadala Ventures, said: “Unlike most direct-to-consumer insurtechs, wefox acts as an ecosystem enabler – empowering the various distribution channels instead of competing with them. This model has allowed wefox to scale quickly and sustainably, providing brokers and customers alike a platform that seamlessly digitizes the insurance market.”
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