Wefox, a Berlin-based insurtech company, has raised USD 400 million in Series D fundraising, which includes both stock and debt, to reach a valuation of USD 4.5 billion on July 12, 2022.
Mubadala Investment was the lead investor in the round, and other investors included EDBI, Eurazeo, LGT, Horizons Ventures, OMERS Ventures, and Target Global. Over five investment rounds, the platform has received USD 1.3 billion.
The business, which has been flushed with cash, announced that it has long-term intentions to grow into the United States and Asia in 2024 and new European markets in 2022.
The business will use the extra funds to grow in the United States and Asia. It currently runs in five European nations.
What the founders have to say:
Julian Teicke, CEO and founder of wefox stated:
“Our business model, which prioritizes indirect distribution through agents rather than direct sales, is clearly validated by this new valuation. We already have more than two million customers, and by the end of this year, we hope to have three million. It is evidence of our emphasis on prediction and prevention rather than the conventional repair-and-replace strategy.
Fabian Wesemann, CFO and founder of wefox stated:
“The investor community has strongly endorsed our indirect strategy, which enables us to be cash efficient. This new investment is yet another example of how we have continued to operate well despite challenging economic conditions. The additional money will be used to duplicate Wefox’s successful concept and track record on a worldwide scale.”
What the investors have to say:
Ibrahim Ajami, head of Mubadala Ventures stated:
“Instead of competing with the various distribution channels, like most direct-to-consumer insurtechs do, the platform functions as an ecosystem facilitator. Wefox has developed swiftly and sustainably because of this strategy, giving clients and brokers access to a platform that effortlessly digitizes the insurance market.”
More about the startup:
Wefox, a company founded in 2015, avoids the direct-to-consumer strategy by selling a range of insurance products through a combination of internal and external brokers. The business claims that USD 320 million was brought in last year. It made almost USD 200 million in sales in the first four months of this year.
Wefox claimed to have educated its own brokers in other markets like Switzerland, Germany, and Austria while maintaining a network of about 3,000 independent brokers in its home country of Germany.
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