Germany-based insurtech wefox has raised a total of $110m with a $55m credit facility from J.P. Morgan and Barclays, the remaining $55m in equity was raised from both new and existing investors as a second closing of the Series D funding at a valuation of $4.5bn.
According to the announcement, the new funding will be used to further strengthen wefox’s insurance and distribution business, which includes the recent launch of a global affinity business, and to develop its technology platform.
The funding comes following a record first quarter financial performance and highlights the company’s clear path towards profitability.
Julian Teicke, CEO and co-founder of wefox, said: “We are delighted to have two of the world’s most prestigious financial institutions – J.P. Morgan and Barclays – supporting our business, which strengthens our plans to enhance our insurance and distribution capabilities whilst building our platform.”
Fabian Wesemann, CFO and co-founder of wefox, added: “The market environment has shifted significantly over the last 18 months and we have enhanced our operating model to capitalise on this new reality.
“In addition to our new investors in this second close, we are also pleased to have secured the credit facility from J.P. Morgan and Barclays, which gives us tremendous confidence in steering the company towards profitability with a clear focus on unit economics.”