WEFOX CLOSES US$400M

SERIES D ROUND

wefox, the Berlin-based insurtech, has successfully closed a Series D funding round of $400m and increased its post-money valuation to US$4.5bn.

Mubadala Investment Company led the equity raise with participation from EDBI, Eurazeo, Lightrock, the impact investing platform affiliated with LGT, Horizons Ventures, OMERS Ventures and Target Global.

 

The round sees wefox increase its valuation from US$3bn to US$4.5bn 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 testament to our focus on prediction and prevention, rather than the traditional approach of repair and replace. 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,” added Mr. Teicke.

 

wefox intends to use the funding for product development and expand across Europe and thereafter Asia and the US.

 

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,” added Mr. Wesemann.

 

Ibrahim Ajami, Head of Ventures and Growth at Mubadala, 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.”

 

Despite the current economic climate, wefox remains one of the very 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.

 

wefox is a fully licensed digital insurance company that sells insurance through intermediaries and not directly to customers, which has resulted in significant growth. 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 former president of Samsung Electronics, Young Sohn as chairman of the board.

 

Ends/

About wefox

[GER]

wefox. Empowering Insurance.

wefox wurde 2015 von Julian Teicke, Fabian Wesemann und Dario Fazlic gegründet. wefox ist ein Insurtech mit einem einzigen Ziel: Empowering Insurance; die Sicherheit von Menschen gewährleisten, indem wir Versicherungen zugänglich machen. Seit der Gründung 2015 hat das Unternehmen seinen Umsatz jährlich verdoppelt und lag 2022 bei 580 Mio. USD. wefox hat aktuell über 2 Mio. Kunden in seinen Märkten Österreich, Deutschland, Italien, Polen, den Niederlanden und der Schweiz. Im Mai 2023 sicherte sich wefox eine Kreditfazilität von 55 Mio. USD von J.P. Morgan und Barclays und einen zweiten Abschluss seiner Series D in Höhe von 55 Mio. USD ab. wefox ist mit 4,5 Mrd. USD bewertet.

[ENG]

wefox. Empowering Insurance.

wefox was founded in 2015 by Julian Teicke, Fabian Wesemann and Dario Fazlic. wefox is an insurtech driven by a single purpose: enabling people to be safe through empowering insurance. Since launching in 2015, the company has doubled its revenues every year to reach US$580 million in 2022 serving more than 2m customers across Austria, Germany, Italy, Poland, The Netherlands and Switzerland where wefox currently operates. In May 2023, wefox secured US$55m credit facility from J.P. Morgan and Barclays alongside a $55m second close in its series D at US$4.5bn valuation.


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