The funding is planned to be utilised for Wefox’s expansion into the US and Asian markets
Germany’s digital insurance company Wefox has raised $650m funding in a Series C funding round that valued the company at $3bn.
The insurtech firm plans to utilise the proceeds for expansion into the US and Asia within the next two years. It will also invest in strengthening its existing presence in Germany, Austria, Switzerland, and Poland.
According to Wefox, the funding round marks the largest Series C to date for an insurtech globally.
The round was led by Target Global, with participation from existing investors including OMERS Ventures, Gsquared, Merian, Horizons Ventures, Eurazeo, Mubadala, Creditease, Salesforce Ventures, and Speedinvest, among others.
LGT, Partners Group, Jupiter, and FinTLV are the new investors in the company.
Wefox CEO and founder Julian Teicke said: “Our business has grown significantly over the past six years, and since the beginning, we have consistently delivered strong year-on-year growth.
“This year we took several important steps, including unifying the business under one brand, expanding into Poland, and setting up a deep tech team in Paris.
“Within the next few years, we plan to expand our global footprint by increasing our presence in Europe and moving into both the US and Asian markets.”
Berlin-based Wefox is engaged in selling insurance through intermediaries and not directly to customers.
Launched in 2015, the company posted a profit for its insurance business last year. In addition, the company’s revenue doubled to $143M in 2020, compared to 2019.
Wefox targets to increase its revenue to $350m in 2021, as it sets up the branded sales team and product portfolio, reported Reuters.
The company’s CFO and co-founder Fabian Wesemann said Wefox’s own-brand portfolio contributed to 30% of its revenue last year.
Wefox launched its own-brand portfolio in 2018.
Target Global general partner Yaron Valler said: “Wefox is unique among the insurtech players with ample room for growth ahead.
“Wefox continues to deliver exceptional results backed with demonstrable year-on-year revenue growth, which saw their insurance carrier, Wefox Insurance, report a profit earlier this year, marking them out to be the first insurtech to reach profitability.”