wefox, the Berlin-based digital insurer, has seen its post-money valuation increase to $4.5 billion after the company successfully closed a $400 million Series D funding round, led by sovereign investor Mubadala Investment Company.
Comprised of both debt and equity, the raise also featured participation from Eurazeo, LGT, Horizons Ventures, OMERS Ventures and Target Global.
wefox says that it intends to use the proceeds for product development and expansion across Europe, and later Asia and the U.S.
This latest funding round means the insurtech has increased its valuation by $1.5 billion in 12 months, which goes against the current trend in the insurtech market and more broadly across the technology sector.
Julian Teicke, Chief Executive Officer (CEO) and founder of wefox, commented: “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.”
The $400 million Series D round follows a $650 million Series C round in 2021, a $235 million Series B round in 2019, a $30 million Series A round in 2017, and a $5.5 million Seed round in 2016.
“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 Teicke.
Fabian Wesemann, Chief Financial Officer (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, added: “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.”
