Wefox was able to clock a 50% jump on its $3 billion valuation in the Series C round in June last year.

Berlin-based insurtech wefox has raised $400 million in a Series D equity round led by Mubadala Investment Company with participation from EDBI, Eurazeo, LGT, Horizons Ventures, OMERS Ventures and Target Global. In the present environment rife with down rounds (e.g. Klarna), layoffs and collapsing public market values of listed fintechs, wefox said it bucked the trend currently experienced in the insurtech market and more broadly across the tech sector. (wefox)

The company will apply the new money for product development and expansions across Europe, Asia, and the US.

Indirect distribution model

Julian Teicke, CEO and founder of the company, said: “This new valuation of US$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.”

Teicke told Forbes that its operations are already profitable, and that it could roll out its successful business model globally.

“We continue doubling our revenues with last year reaching US$320m,” he said in a statement. “Within the first four months of this year wefox generated more than US$200m in revenues, which keeps us on track to achieve our revenue target of US$600m by the end of 2022.”

The company now has more than two million customers. Unlike its peers, many of which are laying off employees, wefox is continuing to hire. Its workforce has grown from 550 employees in 2021 to 1,300 employees today. It projects that by end-2022 its headcount would touch 2,000.

Related Story: German Digital Insurer wefox Hits Purple Patch With Record $650M Funding