Beating the current trend being experienced in the insurtech market, Berlin-based insurtech wefox has raised a Series D funding round of $400 million comprising equity and debt to reach a valuation of $4.5 billion. Leading the round was Mubadala Investment along with participation from EDBI, Eurazeo, LGT, Horizons Ventures, OMERS Ventures and Target Global. The platform has now raised $1.3 billion over five funding rounds.
The company will use the extra cash to expand into the U.S. and Asia. Currently, it operates in five European countries.
Founded in 2015, Wefox sells various insurance products through a combination of in-house and external brokers, bypassing the direct-to-consumer model. According to the company, its revenues reached $320 million last year. Within the first four months of this year, it generated more than $200 million in revenues.
Julian Teicke, CEO and founder of wefox, said: “This new valuation is a clear validation of our business model, which focuses on indirect distribution via agents rather than direct. We have more than two million customers and we aim to reach three million customers by the end of this year. It is a testament to our focus on prediction and prevention, rather than the traditional approach of repair and replace.”
Fabian Wesemann, CFO and founder of wefox, said: “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.”
Ibrahim Ajami, head of Mubadala Ventures, added: “Unlike most direct-to-consumer insurtechs, the platform 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 digitises the insurance market.”