Insurtech wefox has raised a total of $110m from Series D extension with a $55m credit facility from J.P. Morgan and Barclays, the remaining $55m in equity was raised from both new and existing investors as a second closing of the Series D funding at a valuation of $4.5bn.
We are delighted to have two of the world’s most prestigious financial institutions – J.P. Morgan and Barclays – supporting our business, which strengthens our plans to enhance our insurance and distribution capabilities whilst building our platform.Julian Teicke, CEO and co-founder of wefox
According to the announcement, the new funding will be used to further strengthen wefox’s insurance and distribution business, which includes the recent launch of a global affinity business, and to develop its technology platform.
The funding comes following a record first quarter financial performance and highlights the company’s clear path towards profitability.
The market environment has shifted significantly over the last 18 months and wefox have enhanced our operating model to capitalise on this new reality.
In addition to new investors in this second close, wefox has secured the credit facility from J.P. Morgan and Barclays.
According to Beinsure, Wefox has seen its post-money valuation increase to $4.5 billion after the company successfully closed a $400 mn Series D funding round, led by sovereign investor Mubadala Investment Company.
Comprised of both debt and equity, the raise also featured participation from Eurazeo, LGT, Horizons Ventures, OMERS Ventures and Target Global.
Wefox says that it intends to use the proceeds for product development and expansion across Europe, and later Asia and the U.S.
This latest funding round means the insurtech has increased its valuation by $1.5 billion in 12 months, which goes against the current trend in the insurtech market and more broadly across the technology sector.
Julian Teicke, Chief Executive Officer (CEO) and founder of wefox, commented: “This new valuation of US$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.
by Peter Sonner