Abu Dhabi-based Mubadala has participated in a record $650 million Series C funding round for Berlin-based digital insurance company wefox, resulting in a post-money valuation of $3 billion.
Launched in 2015 by CEO Julian Teicke and founders Fabian Wesemann, and Dario Fazlic, wefox has been considered one of Europe’s most promising unicorns.
Mubadala, which is worth $230bn and is the second-biggest sovereign investor in the UAE capital, also led the Series B funding for the company back in 2019.
Amer Alaily, Mubadala Capital – Ventures, told Arabian Business: “We have been impressed by the focus with which Julian and his team have built a transformative insuretech business. We believe there is huge upside ahead of them as they look to new markets and products.”
Amer Alaily
Target Global led the round, which represents the largest Series C to date for an insurtech globally, with participation from existing investors including Mubadala, OMERS Ventures, Gsquared, Merian, Horizons Ventures, Eurazeo, Creditease, Salesforce Ventures, Speedinvest, Alma Mundi Ventures, Victory Park Capital, GR Capital, Mountain Partners, Seedcamp, and Sound Ventures.
New investors include LGT, Partners Group, Jupiter, and FinTLV.
Wefox is a fully licensed digital insurance company that sells insurance through intermediaries and not directly to customers, which has resulted in significant growth with a clear path to profitability.
Fabian Wesemann, wefox CFO and founder, said: “This investment strengthens our growth strategy and moves us closer to realising our vision – to prevent 30 percent of risks from happening – in order to offer the most advanced service to our customers. As part of this, we want to ensure that we are building the technology to automate our business processes to have a STP ratio consistently above 80 percent.”
Julian Teicke (L) and Fabian Wesemann
In 2020 wefox reported a profit for its insurance business, wefox insurance, making it the first digital insurance company to reach profitability. Furthermore, wefox’s revenue increased to $143m in 2020, doubling that posted in 2019.
Julian Teicke, wefox CEO and founder, said: “Within the next few years, we plan to expand our global footprint by increasing our presence in Europe and moving into both the US and Asian markets.”
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