WeFox maintains $4.5bn valuation after raising $110m

17 May 2023

WeFox CEO and co-founder Julian Teicke. Image: WeFox/Luca Fasching

The company has raised more than $1.4bn since 2016 and claims it is in ‘good shape’ to continue its growth internationally.

German insuretech WeFox has raised $110m while maintaining its $4.5bn valuation, as the company focuses on a path to profitability.

The funding includes a $55m revolving credit facility from JP Morgan and Barclays, along with $55m from existing investors and new backers, including Squarepoint.

The revolving credit gives WeFox a more flexible form of financing, allowing the company to withdraw, repay and withdraw again if desired. Meanwhile, the other half of the fresh funds is a second close to WeFox’s Series D funding round, which saw the company raise $400m last year.

WeFox, which was founded in 2015, sells insurance, such as house and motor insurance, through intermediaries on its platform. The company claims to have achieved record financial performance so far this year.

CEO and co-founder Julian Teicke said the latest funding will help the company 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 and 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,” Teicke said.

“We are delighted to have two of the world’s most prestigious financial institutions – JP Morgan and Barclays – supporting our business.”

WeFox plans to use the new funding to strengthen its insurance and distribution business and develop its technology platform.

The company also launched its global affinity business earlier this month, which is designed to connect insurance companies with partners to distribute products.

WeFox has raised more than $1.4bn since 2016. The company’s biggest funding round was in 2021, when it raised $650m and reached a $3bn valuation.

Last year, the company claimed to have grown to more than 2m customers and a workforce of 1,300. WeFox CFO and co-founder Fabian Wesemann said the market environment has “shifted significantly” over the past 18 months.

“We welcome having both JP Morgan and Barclays in addition to our new investors in this second close, which gives us tremendous confidence in steering the company towards profitability with a clear focus on unit economics,” Wesemann said.

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Leigh Mc Gowran is a journalist with Silicon Republic