Insurtech Wefox secures $55m and retains $4.5bn valuation
The backing from Deutsche Bank and UniCredit brings the Berlin-based fintech total raised this year to $160m
German insurtech Wefox has secured $55m in debt financing from Deutsche Bank and UniCredit in a “significant affirmation from the industry”.
The fresh round of funding brings the fintech’s total funds raised this year to $160m, and keeps its valuation at $4.5bn, as first reported by CNBC.
Wefox raised $55m from existing investors JP Morgan and Barclays earlier this year, which added to another $55m in a second close of its Series D funding round — a $400m round which boosted the company’s valuation from $3m to $4.5m in 2022.
After an impressive series of fundraises, the company says it is on track to profitability.
“Leading our company from a period of hypergrowth to one of profitable growth in a short span is a complex challenge,” Wefox co-founder and CEO Julian Teicke said on LinkedIn.
“It compelled us to make hard choices and to step back from several innovative projects close to my heart. Despite these tough decisions, the dedication to adapt to the realities of the market was crucial.”
He added that the company is now looking forward to a “clear path to profitability as a milestone”.
According to CNBC sources, the deal with Deutsche Bank and UniCredit was structured as a convertible debt agreement, so the debt will convert to equity when Wefox next raises cash.
The sources also said the funds will be used to help accelerate plans for global expansion and mergers and acquisitions.
Setting itself apart from its competitors in the insurance market, Wefox does not go directly to consumers, but instead connects insurance companies, distributors and customers.