- Significantly oversubscribed, this is the largest series C funding round for an insurtech globally
- Funding round was led by Target Global with participation from existing investors, including OMERS Ventures, G Squared, Merian, Horizons Ventures, Eurazeo, Mubadala Capital, Salesforce Ventures, Speedinvest, CreditEase, GR Capital and Seedcamp
- New investors included FinTLV, LGT and its affiliated impact investing platform Lightrock, Partners Group, EDBI, Jupiter, UBS and Decisive
- wefox reported revenues of US$143m for the 2020 financial year and posted a profit for its insurance business, wefox Insurance, for the first time
Berlin, June 6 2021: Berlin-based wefox, Europe’s largest digital insurance company has raised a record US$650 million for its Series C funding round last week led by Target Global, resulting in a post-money valuation of US$3 billion.
This round is the largest for an insurtech globally and one of the largest series C rounds ever recorded. wefox intends to invest proceeds towards strengthening its presence in existing markets and expanding globally within the next two years. Their Series B funding round led by Mubadala Capital in 2019 raised $235M.
Since its launch in 2015, wefox has grown its revenues to more than US$140m in 2020 and reported a profit for 2020 through its insurance carrier, wefox Insurance.
Julian Teicke, CEO and founder of wefox, commented “We’ve grown our business significantly delivering strong year-on-year growth for the past six years. This year we took important strategic steps, such as unifying the business under one wefox brand, expanding into Poland, and setting up a deep tech team in Paris. Within the next few years, we will expand our global footprint, increasing our presence in Europe, and moving into both the US and Asian markets.”
“We have leveraged technology to improve the customer experience for both our advisors and our customers, increasing customer satisfaction, reducing customer acquisition costs, increasing cross-selling, and decreasing churn. wefox has also 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”, added Mr Teicke.
The company continues to deliver a loss ratio supported in large part by its straight-through-processing (STP) of more than 80%, and a central product factory that swiftly distributes new products to the market due to its full stack insurance technology.
Fabian Wesemann, CFO and founder of wefox, said “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.”
Yaron Valler, General Partner at Target Global, said “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. We invested in wefox in their series A round in 2016 and we are delighted to be leading this series C round. wefox is unique among the insurtech players with ample room for growth ahead.”
Goldman Sachs International were hired as the private placement agent to wefox for the financing round.
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