wefox raises $400 million at $4.5 billion valuation
Berlin-based wefox closed a Series D funding round of $400 million (equity and debt) and increased its post-money valuation to $4.5 billion, up from $3 billion (post-money) in 2021. Mubadala Investment Company led the equity raise with participation from Eurazeo, LGT, Horizons Ventures, OMERS Ventures and Target Global.
Founded in 2014, Wefox was originally considered a Lemonade-like insurance startup but the company went through several changes throughout the years. wefox intends to use the funding for product development and expand across Europe, Asia and the US.
wefox is not profitable but CFO and founder Fabian Wesemann believes the company’s model ensures it delivers a stronger financial profile “with a clear path to profitability.”
https://www.youtube.com/watch?v=pOyDi4SdBPQ
“This new valuation of $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 $320M. Within the first four months of this year wefox generated more than $200M in revenues, which keeps us on track to achieve our revenue target of $600M by the end of 2022. 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.” – Julian Teicke, CEO and founder of wefox.
“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.” – Ibrahim Ajami, head of Mubadala Ventures.
