- Digital insurance agency Wefox raised $400 million in a combined debt and equity round.
- The funds boost Wefox’s valuation from $3 billion to $4.5 billion.
- Wefox relies on technology to take a “prediction and prevention” approach, rather than relying on a “repair and replace” mindset.
Digital insurance agency Wefox just raised $400 million in a combined debt and equity round led by Mubadala Investment Company. EDBI, Eurazeo, LGT, Horizons Ventures, OMERS Ventures, and Target Global also participated. The investment brings Wefox’s total funding to $1.3 billion.
The round boosted Wefox’s valuation from $3 billion to $4.5 billion in 12 months. This increase comes at a time when other fintechs are closing funding in down-rounds, meaning their valuation has decreased.
“This new valuation of $4.5 billion is a clear validation of our business model, which focuses on indirect distribution via agents rather than direct,” said Wefox CEO and Founder Julian Teicke. “This makes our business one of the most credible insurtechs in the market right now.”
According to Teicke, Wefox doubled its revenue, which stood at $320 million last year. Within the first four months of this year, Wefox saw $200+ million in revenues, which positions the company to generate $600 million by the end of this year.
Founded in 2015 and with more than two million customers, Wefox is a licensed digital insurance company that sells insurance through intermediaries, not directly to customers. The company relies on technology to take a “prediction and prevention” approach, rather than relying on a “repair and replace” mindset, which many insurance companies take.
Wefox will use today’s funds for product development and to expand across Europe, Asia, the U.S. The company aims to reach three million customers by year-end.
“Wefox is in the strongest position ever,” said the company’s CFO and Founder Fabian Wesemann. “In successfully closing this funding round we reinforce our strategy and enable faster acceleration on our path to greater revenues and profit.”