Wefox raises $650 million

There has been a lot of speculation, but now the insurtech has confirmed it: Wefox has raised 650 million US dollars in a recent financing round, bringing its valuation to three billion US dollars.

Rumors are usually true when they are so persistent: Now insurtech Wefox has confirmed its funding round of 650 million dollars. The round is led by existing investor Target Global and also includes the Israeli fund FinTLV, Swiss investors Partners Group and Lichtensteiner Bank LGT.

With this financing, Wefox is worth three billion US dollars and joins the list of the most successful German start-ups. For the Berlin-based company, this is just the beginning: "We want to become one of the dominant insurance players worldwide by the end of 2030. And this investment will enable us to play in a higher league," says CEO Julian Teicke to Deutsche Presse-Agentur.

The money raised will initially be used to expand in Europe and then turn to the American and Asian markets. "In the next two to three years, we will also operate across continents," says Teicke. Wefox is also continuing to develop its IT, which forms the basis of the business. Even today, "9 out of 10 business processes at Wefox are carried out without human interaction," explains Teicke. This speeds up these processes and reduces their costs. The insurtech is also planning to launch 24 new insurance products this year.

Wefox is seven years old and started with a platform for insurance providers and brokers; the insurtech itself received a commission. It added the sale of its own insurance policies in 2017. The core of the business is traditional sales via brokers who sell the insurance policies.