Germany-based insurtech wefox has closed a series D funding round worth $400 million.
The equity and debt round gives wefox a post-money valuation of $4.5 billion.
A digital-first insurance company that sells policies through intermediaries, wefox intends to use the new funding for product development and expansion across Europe before moving into Asia and the US.
It’s aiming to achieve a revenue target of $600 million by the end of 2022, after doubling revenue last year to $320 million and generating more than $200 million in the first four months of this year.
Julian Teicke, chief executive officer 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.”
Teicke added: “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.”
Mubadala Investment Company led the equity raise portion of the series D funding round, with participation from Eurazeo, LGT, Horizons Ventures, OMERS Ventures and Target Global.
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 digitizes the insurance market.”