European insurtech wefox is close to finalising a funding agreement valued at up to €170mn, led by private equity firm Searchlight Capital Partners.
The deal will include the refinancing of existing bank debt and an equity injection estimated between €80mn and €100mn.
Founded in 2015, wefox focuses on digital insurance distribution across Europe. The company has faced significant financial pressure over the past 18 months, including risks of liquidation.
In May 2021, wefox raised $650mn—the largest funding round recorded by an insurtech to date.
This upcoming capital raise aims to stabilise wefox’s financial position amid current economic pressures.
Existing investors, including Chrysalis Investments and Target Global, are expected to participate in the equity portion of the deal.
The new funding is viewed as essential to prevent a forced sale of key assets, particularly its subsidiary TAF.
Separately, wefox Holding AG has announced the sale of its Liechtenstein-based insurance entity, wefox Insurance AG, to a Swiss consortium led by BERAG, a pension services provider.
The divestment aligns with wefox’s plan to focus on core operations and simplify its business structure.
As announced in June 2024, the Liechtenstein-domiciled insurance carrier wefox Insurance AG is no longer part of wefox’s core business. wefox has now agreed to sell the insurance company to a group of Swiss companies led by BERAG.
BERAG is an independent Swiss provider of pension services and in recent years has represented wefox Insurance AG as an MGA in Switzerland and built up the daily sickness benefits business.
Following the streamlining of the insurance company’s portfolio, it is now focusing on collective insurance for daily sickness benefits.
This ensures continuity for the customers of wefox Insurance AG. wefox stated that the sale ensures continuity for existing customers. Both wefox and BERAG aim to facilitate a seamless transition.
BERAG, already a partner of wefox Insurance AG, will remain the primary contact for brokers and customers in Switzerland. The transaction remains subject to regulatory approval and is expected to close in the first half of 2025.
