FinTech: German Digital Insurer wefox Hits Purple Patch With Record $650M Funding
The company’s Series C round was led by Berlin-based VC firm Target Global.
The largest Series C funding globally by an insurtech has been achieved by Berlin-based wefox, the startup announced today. The round, which valued the company at US$3 billion post-money, was led by Target Global. In 2020, wefox reported a profit for its insurance business, wefox insurance, making it the first digital insurance company to become profitable. Furthermore, the company’s revenue increased to $143M in 2020, doubling its 2019 revenue. (BusinessWire)
Other existing investors that took part in the funding were 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 included LGT, Partners Group, Jupiter, and FinTLV.
Superfast, beyond expectation raise
wefox told TechCrunch that the round was oversubscribed 4X, and that it was accomplished exceptionally fast – just four weeks in total.
wefox: Agent-driven insurance sales
wefox is the parent company of wefox Insurance, which is the in-house regulated insurance carrier.
It does not sell insurance directly to customers, instead, its agents market the policies.
“This is why we have 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,” said CEO Julian Teicke. “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.”
Yaron Valler, General Partner at Target Global said wefox Insurance had become the first insurtech to achieve profitability based on its exceptional year-on-year growth.
Use of funds
The insurtech will use the new fundraise to expand into the US and Asia in the next couple of years. It will also beef up its existing markets in Germany, Austria, Switzerland, and Poland. It also intends to develop a branded sales team and broaden its product portfolio.
According to Reuters, wefox is looking to leapfrog its revenues to $350 million this year, from $143 million in 2020.
Related Story: Next Insurance Raises $250M, Doubles Valuation To $4B
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