wefox has reportedly secured funding of €151 million.
This consisted of a €76 million capital raise “primarily from its existing investor base as well as refinancing of an existing credit facility with €75 million from Searchlight Capital Partners’ credit fund, Searchlight Opportunities Fund II.”
The funding follows the “completion of the Group’s business restructuring program, including the closing of the sale processes for the Liechtenstein-based wefox Insurance AG and the Italian companies wefox MGA S.r.l. and wefox Services Italy S.r.l., and puts wefox on a path to profitability for the full year 2025.”
The new funding will enable wefox to “build out its market positions in Austria, the Netherlands, and Switzerland and to develop its asset-light Managing General Agent (MGA) and smart insurance distribution businesses internationally.”
In Austria, wefox offers a digital platform “for retail insurance brokers in the local market that has allowed it to become a wholesale broker.”
In the Netherlands, wefox is focused on the Dutch term-life market “under the TAF brand, providing customer propositions with its full-service MGA model.”
In Switzerland, wefox is a firm focused on “retail insurance distribution, continuously expanding its customer offering to provide holistic risk advice for individuals.”
By strengthening its partnerships with insurance companies and by scaling its local distribution platforms, wefox is “positioned for sustainable revenue growth and margin expansion in its current markets and beyond.”
With the completion of the refinancing, “the composition of the board of directors of wefox Holding AG has changed.”
Prateek Puri, Partner at Searchlight Capital Partners and Joachim Müller, CEO, have joined the board.
Julian Teicke, Fabian Wesemann, Dario Fazlic and Nikolaus Frei have now left the board.
Joachim Müller, CEO of wefox Holding AG, commented:
“Changing customer needs, new regulatory requirements, and new technological capabilities are transforming the insurance value chain. Our strengths and our focus on MGA and smart distribution services make us an attractive partner for risk carriers and downstream brokers. We believe that our compelling offering and our smart, asset-light business model will create value for our customers, our business partners and our investors. I would like to express my gratitude to my team and all employees who have contributed to our successful transformation, as well as our investors for their continued trust and support. I would also like to thank the outgoing board members for their support and collaboration, and I look forward to working with Prateek on the board.”
As noted in the update, wefox is a European insurance platform “combining smart insurance distribution and Managing General Agent (MGA) services.”
With market positions in Austria, the Netherlands and Switzerland, wefox works closely “with insurance carriers and a broad network of distribution partners to offer differentiated customer propositions and create value for all stakeholders.”