Berlin-based insurtech firm wefox Group has raised US $650 million in a Series C round of funding, the proceeds of which will be used to help the firm expand into the US and Asia within the next two years.
The funding, which brings wefox’s post-money valuation to $3 billion, will also help to strengthen the firm’s presence in its existing markets of Germany, Austria, Switzerland and Poland.
Target Global led the round, with participation from existing investors including OMERS Ventures, Gsquared, Merian, Horizons Ventures, Eurazeo, Mubadala, Creditease, Salesforce Ventures, Speedinvest, Alma Mundi Ventures, Victory Park Capital, GR Capital, Mountain Partners, Seedcamp, and Sound Ventures. New investors include LGT, Partners Group, Jupiter, and FinTLV.
“Our business has grown significantly over the past six years, and since the beginning we have consistently delivered strong year-on-year growth,” said wefox CEO and founder Julian Teicke.
“This year we took several important steps, including unifying the business under one brand, expanding into Poland, and setting up a deep tech team in Paris. Within the next few years, we plan to expand our global footprint by increasing our presence in Europe and moving into both the US and Asian markets.”
wefox is a fully licensed digital insurance company that sells insurance through intermediaries and not directly to customers, which has resulted in significant growth with a clear path to profitability.
Teicke continued: “This is why wefox has built a huge network of advisors across Europe. We believe that insurance is all about people, and we believe that technology is an enabler and should not replace the human connection.”
“We have set out to improve the customer experience for both our advisors and our customers through technology to increase customer satisfaction, reduce customer acquisition costs, increase cross-selling, and decrease churn.”
Fabian Wesemann, wefox CFO and founder, also commented: “This investment strengthens our growth strategy and moves us closer to realising our vision – to prevent 30% of risks from happening – in order to offer the most advanced service to our customers. As part of this, we want to ensure that we are building the technology to automate our business processes to have a STP ratio consistently above 80%.”
Yaron Valler, General Partner at Target Global, added: “wefox is unique among the insurtech players with ample room for growth ahead. wefox continues to deliver exceptional results backed with demonstrable year-on-year revenue growth, which saw their insurance carrier, wefox Insurance, report a profit earlier this year, marking them out to be the first insurtech to reach profitability.”