The insurtech space in Europe has witnessed remarkable growth and disruption in recent years, driven by innovative startups such as Wefox, Getsafe, Alan, Zego, and Qover. These companies are reshaping the insurance industry through their use of technology and data-driven approaches. Wefox, for instance, operates as a digital marketplace connecting insurance brokers, customers, and insurance carriers, streamlining the insurance buying and selling process.
The Berlin-based insurtech has now raised a total of $110 million in funding to develop a platform that will enable other insurers to access its advanced technology. The financing includes a revolving credit facility of $55 million provided by JPMorgan Chase and Barclays. In addition, Wefox secured $55 million in equity through an extension of its 2022 Series D round, with participation from both new and existing investors, including Squarepoint. With offices in New York, London, and Singapore, Squarepoint serves institutional investors, including pension funds, endowments, and sovereign wealth funds.
The fresh capital infusion comes after wefox achieved a record-breaking financial performance in the first quarter and signifies the company’s clear path to profitability. The funds will be utilised to further strengthen wefox’s insurance and distribution business, including the recent launch of a global affinity business, as well as the development of its technology platform.
Julian Teicke, CEO and co-founder of wefox, expressed his delight at having the support of prestigious financial institutions like J.P. Morgan and Barclays. Teicke stated, “This support strengthens our plans to enhance our insurance and distribution capabilities while building our platform.” He also highlighted the significance of the Series D funding round, emphasizing its contribution to the company’s international growth and sustainable profitability.
Fabian Wesemann, CFO and co-founder of wefox, emphasised the shift in the market environment and how the company has adapted its operating model to capitalise on these changes. Wesemann welcomed the involvement of J.P. Morgan and Barclays, along with new investors, in the second close of the funding round, expressing confidence in the company’s ability to achieve profitability with a strong focus on unit economics.
Established in 2015 by Julian Teicke, Fabian Wesemann, and Dario Fazlic, wefox is a digital insurance company that differentiates itself by selling third-party products through human agents rather than direct channels. Leveraging analytics, wefox achieves better loss ratios compared to the market.
This recent funding round and credit facility reinforce wefox’s position in the insurtech industry, enabling the company to further enhance its operations and expand its global reach, while maintaining a strong financial trajectory and customer-centric approach.