Insurtech wefox hits $4.5bn value; to double revenues by year-end
Berlin-based digital insurer wefox has closed a $400 million Series D funding round that values the business at $4.5 billion, up from its valuation of $3 billion a year ago, bucking the current trend seen in the insurtech market.
The latest funing was led by Mubadala Investment Company, with participation from Eurazeo, LGT, Horizons Ventures, OMERS Ventures and Target Global.
wefox said it intends to use the funding for product development and expand across Europe and thereafter Asia and the US.
The company claims to currently have more than two million customers and aims to reach three million customers by the end of this year. At the same time, wefox expects to reach 2000 employees by the end of 2022.
Julian Teicke (pictured right), 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.”
Teicke added: “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.”
Fabian Wesemann (pictured left), 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, commented: “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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