After N26 and Trade Republic, it's Wefox's turn to announce its fundraising, at $650 million. The insurtech founded in 2015 is now valued at $3 billion. Read all about it.
From brokerage to digital insurance
Launched in 2015 in Germany, Wefox is considered one of Europe's most promising unicorns. The company is currently pursuing its brokerage business for third parties while developing its own products.
Specifically, Wefox has created a platform enabling insurance brokers to manage their customers online. Thanks to this 80% automated platform, it claims to settle almost two-thirds of claims in less than 24 hours.
The company also offers its own insurance policies, known as " Wefox Insurance ". Customers can choose from several products, including :
- personal insurance,
- home insurance,
- automobile insurance,
- liability insurance.
The benefits: paperless management, attractive rates, and a simplified online subscription process.
Expansion in the United States and Asia
In 2020, Wefox doubled its sales over the previous year, with revenues reaching $140 million. On the strength of this development, the Berlin-based startup is looking to expand its activities in the United States and Asia, thanks to its latest round of funding, in which Omers Ventures, Gsquared, Mountain Partners, Merian, Horizons Ventures, Eurazeo, Mubadala, Creditease, Salesforce Ventures, Speedinvest, CE Innovation Capital, GR Capital and Seedcamp took part.
Announced on June 1, 2021, the round now values the company at $3 billion. Co-founder and CEO Julian Teicke tells TechCrunch that "almost all the major existing investors" participated. The process was swift, taking Wefox just two weeks to secure all the commitments.
The insurtech company therefore plans to expand in the USA and Asia, as well as strengthening its presence in markets where it is already present, i.e. Germany, Austria, Poland and Switzerland.
Diversification of the existing offer
Wefox has announced its intention to diversify its offer with new insurance products such as :
- pet insurance,
- health insurance,
- life insurance.
This year, the startup will launch some twenty new products.
At the same time, Wefox plans to invest in the automation of day-to-day processes to reduce its administrative costs. To this end, the company has set up a deep-tech team based in Paris.
To succeed in the American and Asian markets, Europe's best-funded insurtech will have to compete with startups that have already proved their worth, such as Lemonade, which offers home insurance powered by Artificial Intelligence and focused on social impact, and Root, which is now established in over thirty American states.