Wefox, an online platform for insurance plan sales, has secured a debt financing of $55 million from Deutsche Bank and Unicredit. Despite this influx of funding, the company's valuation remains at $4.5 billion, as no equity has been raised. This year, Wefox has now obtained over $160 million in funding altogether.
Wefox, a German insurance technology group with a valuation of $4.5 billion, has raised $55 million from Deutsche Bank and UniCredit through a convertible debt agreement, according to two anonymous sources familiar with the deal. This injection of capital follows on from $55 million debt rounds from JPMorgan and Barclays, and a $55 million internal fundraise earlier this year, which brings the company's total funding for 2020 to $160 million. This vote of confidence in the insurtech industry comes amidst a tough macroeconomic environment. The funds are expected to help Wefox expand globally and pursue M&A opportunities.
Unlike other insurtech companies, Wefox works with a network of in-house and external brokers for distribution of its insurance products, while also tapping into 'affinity distribution'- selling insurance software to businesses on a subscription basis (e.g. car insurance being offered at a car dealership). Additionally, the company is invested in AI, employing it to automate policy applications and customer service, with three tech hubs devoted to AI in Paris, Barcelona, and Milan. It is backed by a variety of VCs and institutional investors, including Salesforce Ventures, Target Global, Seedcamp, Speedinvest, Horizon Ventures, UBS, Goldman Sachs, Mubadala Capital Ventures, and Jupiter Asset Management.
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