Berlin-based wefox, an insurtech company, announced on Wednesday that it has raised $110M (approximately €101M) in a round of funding.
JP Morgan and Barclays have provided a $55M (approximately €50.7M) revolving credit facility. An additional $55M (approximately €50.7M) in equity has been raised from existing and new investors, including Squarepoint.
This equity raise marks the second closing of the Series D funding round, valuing wefox at $4.5B (approximately €4.1B).
wefox says it will allocate the fresh capital injection toward bolstering its insurance and distribution business. It will involve enhancing its recently launched global affinity business that aims to strengthen partnerships with various organisations worldwide.
Additionally, the funding will support the continued development of wefox’s technology platform, ensuring it remains at the forefront of innovation in the insurtech industry.
Julian Teicke, CEO and co-founder of wefox, says, “We are delighted to have two of the world’s most prestigious financial institutions – J.P. Morgan and Barclays – supporting our business, which strengthens our plans to enhance our insurance and distribution capabilities whilst building our platform.”
“The second close of our Series D round ensures we continue to focus on building an international business with a strong path to profitability. We have already taken important measures to fortify our business for the future. Early Q1 financial performance shows that we are in good shape to navigate the challenges ahead and continue our international growth in a sustainable way,” adds Mr. Teicke.
The announcement comes ten months after raising €398.79M in a Series D equity and debt round of funding.
wefox: Making insurance simple through technology
Founded in 2015 by Julian Teicke, Fabian Wesemann, and Dario Fazlic, wefox claims to be driven by a single purpose: to make people safe and prevent risk by reinventing insurance at scale through technology.
A fully licensed digital insurance company, it sells insurance through intermediaries and not directly to customers. wefox is the parent company of wefox Insurance – an in-house regulated insurance carrier.
Its platform connects insurance companies, distributors, and customers to give them easy access to digital insurance solutions. The goal is to keep people safe by making insurance ten times better through technology.
Fabian Wesemann, CFO and co-founder of wefox says, “The market environment has shifted significantly over the last 18 months and we have enhanced our operating model to capitalise on this new reality.”
“In addition to our new investors in this second close, we are also pleased to have secured the credit facility from J.P. Morgan and Barclays. This gives us tremendous confidence in steering the company towards profitability with a clear focus on unit economics,” adds Mr. Wesemann.
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