wefox, a Germany-based Insurtech, has raised $400 million in a Series D funding round that gave the firm a $4.5 billion “post money” valuation, according to a statement by the company. The funding was in both debt and equity. The company did not share the split.
Mubadala Investment Company led the equity raise with participation from Eurazeo, LGT, Horizons Ventures, OMERS Ventures, and Target Global.
wefox was previously valued at $3 billion, and the company noted they were bucking the trend of lower valuations and down rounds.
Julian Teicke, CEO and co-founder of wefox, issued the following statement:
“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 USD $320 million. Within the first four months of this year, wefox generated more than USD $200 million in revenues, which keeps us on track to achieve our revenue target of USD $600 million by the end of 2022.”
Teike added that wefox currently has over 2 million customers with the expectation of topping 3 million customers by the end of the yaer.
“… 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.”
wefox said it will use the additional capital to develop their product further with plans to expand across Europe and with the intent to launch in Asia as well as the US.
Fabian Wesemann, CFO and co-founder of wefox, added that the company 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.”
Ibrahim Ajami, head of Mubadala Ventures, said the wefox model has allowed the company to scale quickly and sustainably, seamlessly digitizing the insurance market.
wefox said it continues to hire. Currently, wefox employs 1300+ individuals with an expectation to top 2000 employees by the end of 2022. In 2021, wefox had 550 employees.
wefox is a fully licensed digital insurance company that sells insurance through intermediaries and not directly to customers.