UAE’s Mubadala leads $400m funding round for Berlin-based wefox

Berlin-based insurtech, wefox, has successfully closed a Series D funding round of $400m (comprising equity and debt) and increased its post-money valuation to $4.5bn.

The fully licensed digital insurance company sells insurance through intermediaries and not directly to customers.

Mubadala led the equity raise with participation from Eurazeo, LGT, Horizons Ventures, OMERS Ventures and Target Global.

The round sees wefox increase its valuation from $3bn to 4.5bn in 12 months, bucking the trend currently experienced in the insurtech market and tech sector.

Ibrahim Ajami, head of Mubadala Ventures, said: “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 digitises the insurance market.”

Julian Teicke, CEO and founder of wefox, said: “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.”