wefox, the Berlin-based insurtech announced that it has secured $400M in the form of equity and debt in a Series D funding round at a $4.5B valuation.
The round was led by Mubadala Investment Company, with participation from Eurazeo, LGT, Horizons Ventures, OMERS Ventures, and Target Global.
How will the funding be used?
The German company aims to use the funds to accelerate product development and expand across Europe, Asia, and the US.
Julian Teicke, CEO and founder of wefox, says, “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.”
He adds, “We continue doubling our revenues with last year reaching $320M. Within the first four months of this year, wefox generated more than $200M in revenues, which keeps us on track to achieve our revenue target of $600M by the end of 2022.
Digital insurance company
Founded in 2015 by Julian Teicke, Fabian Wesemann, and Dario Fazlic, wefox is a digital insurance company that sells its third-party products via human agents and not via direct channels. Through analytics, wefox achieves better loss ratios than the market.
The company has generated more than $200M in the first four months of business in 2022 and aims to reach more than $600M in revenues by the end of the year.
Technology allows wefox to have >90% straight-through-processing and a central product factory that ships product innovations internationally much quicker and more cost-effective than the competition.
“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 testament to our focus on prediction and prevention, rather than the traditional approach of repair and replacement. 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,” adds Mr. Teicke.
Earlier this year, wefox appointed Prince Max von Zu Liechtenstein to the board alongside former Klarna executive, Hanna Jacobsson.
In December of last year, wefox appointed the former president of Samsung Electronics, Young Sohn as chairman of the board.
The company employs around 1300 employees at present and expects to reach 2000 employees by the end of 2022.
Fabian Wesemann, CFO, and founder of wefox says “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.”
He adds, “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.”
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.”