wefox

Berlin-based wefox offers digital automobile and home insurance via a mobile app. It also operates a global affinity business that connects insurance companies with distribution partners to expand their distribution network and improve sales.The company operated in six European markets as of May 2023 including Austria, Germany, Italy, Poland, Netherlands and Switzerland. 

The company sells its insurance policies via agents, and also partners with associate brokers to sell its policies. As such, wefox offers personalized advice on its insurance policies, which it claims saves up to 5% on users’ current premium. It also guarantees matching or better conditions on insurance, with advisors helping to source suitable coverage if an appropriate wefox policy is unavailable. Through its mobile app, users can access their insurance policy documents, update their personal details, and file and track progress on claims. As of July 2022, wefox had over 1,300 employees and had plans to further expand its headcount as of the same date.

Additionally, wefox had plans to release its technology stack through the use of APIs in 2023 that would allow other insurance companies to develop their own insurance products, along with monitoring and claims handling capabilities.

Key customers and partnerships

The company served nearly 2.5 million customers as of May 2022, and claimed it offers distribution capabilities to over 300 insurers through 4,000 distribution partners. 

In June 2022, wefox partnered with Akur8, a Paris-based InsurTech that develops AI solutions to automate the insurance pricing process. Through the partnership, wefox planned to leverage Akur8’s proprietary solution that automates risk and demand modeling to improve the pricing of its insurance products.

Funding and financials

The company’s latest funding round was in May 2023, when it raised USD 55 million in Series D extension from existing investors, and obtained a USD 55 million revolving credit facility from JP Morgan and Barclays. The funds were raised at a valuation of USD 4.5 billion, similar to its Series D funding round of USD 400 million, which it closed in July 2022. Wefox had planned to utilize the fresh funds to strengthen its insurance and distribution business, which includes its global affinity business, and to develop its technology platform. Furthermore, it intends to expand into new markets such as France, Spain, and the UK through acquisitions. In addition, the company raised an additional USD 55 million in convertible debt funding from Deutsche Bank and Unicredit in November 2023.

 During FY2021, the company recorded a revenue of USD 350 million (~EUR 296 million) compared to USD 140 million (~EUR 115 million) in 2020. The company also claimed to have generated more than USD 200 million (~EUR 191 million) during the first four months of FY2022 and was on target to reach its annual target of USD 600 million.