Wefox raises $650 million

There was a lot of speculation, now the insurtech has confirmed it: In a recent round of funding, Wefox has raised $650 million, bringing its valuation to $3 billion.

Rumors are usually true when they persist: Now insurtech Wefox has confirmed its $650 million funding round. The round is led by existing investor Target Global, and also includes Israeli fund FinTLV, Swiss investors Partners Group and Lichtenstein-based bank LGT.

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

With the money raised, expansion in Europe is planned first, before turning to the American and Asian markets "In the next two to three years, we will also operate across continents," says Teicke. Wefox is also developing IT, which is the foundation of its business. Already, "9 out of 10 business processes at Wefox are done without human interaction," Teicke explains. This speeds up these very processes and lowers their costs. The insurtech also plans 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. In 2017, it added the sale of its own insurance policies. The core of the business is the traditional distribution via brokers who sell the insurances.