Berlin-based insurance technology company Wefox has raised $400 million in its recent funding round led by Abu Dhabi wealth fund Mubadala.
The Series D round has increased the company’s post-money valuation to $4.5 billion, it said in a release.
“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,” its chief executive officer and founder Julian Teicke said.
The German firm, which sells insurance through intermediaries and not directly to customers, said it will use the proceeds to further develop its product, as well as to expand across Europe, Asia, and the US.
Currently, the company serves over two million customers, which it plans to increase to three million by the end of this year.
“This additional investment is a strong validation from the investor community of our indirect model, which allows us to be cash efficient and is another testament to our continuous performance even in turbulent times. Wefox has a proven model and a sustainable track record to replicate globally, for which the additional funds will be used,” Wefox chief financial officer Fabian Wasemann said.
The latest funding round also saw participation from Eurazo. LEGT, Horizons Ventures, OMERS Ventures, and Target Global.
Since its first round in 2016, Wefox has garnered over $1.3 billion in funds.
“We continue doubling our revenues with last year reaching $320 million. Within the first four months of this year Wefox generated more than $200 million in revenues, which keeps us on track to achieve our revenue target of $600 million by the end of 2022,” Teicke said.
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