Insurtech: Germany’s Insurance Technology Firm Wefox Group Secures $110 Million via Series B Round
Berlin headquartered Wefox Group, an Insurtech firm that has developed the consumer-facing insurance app and carrier One and Wefox, an insurance platform, has secured $110 million via a recent Series B round according to a company release. The additional funding has doubled Wefox’x Series B funding round to approximately $235 million raised.
Following its latest investment round, the firm has a pre-money valuation of around $1.65 billion, according to TechCrunch, which cited sources familiar with the matter.
The Series B funding has been led by OMERS Ventures, the VC division of OMERS, a Canadian pension fund. Merian Chrysalis, Samsung Catalyst Fund and Mundi Ventures also took part in the round.
Wefox Group’s recent raise has come after a previous round of $125 million in March of this year, which was led by UAE government-backed Mubadala Ventures. Chinese investment firm CreditEase also took part in that round.
Existing Wefox investors include Target Global, Salesforce Ventures, Seedcamp, Idinvest and famous Hollywood celebrity Ashton Kutcher’s investment firm, Sound Ventures. Julian Teicke, co-founder and CEO at Wefox, noted that the company has generated more than $100 million in revenue. He claims that the company provides services to over half a million clients. He added that Wefox employs around 400 professionals, when carefully examining Wefox Group’s revenue sources, we see that the firm’s direct to consumer insurance brand, One Insurance, managed to generate increased yearly revenues by almost 10x in 2019, to about $30 million. Notably, Wefox’s management also claims it’s among Germany’s fastest-growing providers of private liability and household insurance.
Teicke notes that One’s loss ratio, or the amount of premiums generated that are paid out via claims, stands at less than 40%, which is reportedly a lot better than when considering the industry as a whole. He pointed out that Wefox’s use of data allows One to determine risk in a tech-driven and detailed manner.
Teicke adds that the capital raised will be directed toward the firm’s global expansion efforts next year. Wefox is operating in Austria, Germany, Switzerland, and Spain, and Italy.