Wefox, a German digital auto and home insurer, raised EUR 25 million (~USD 27 million) in a convertible loan round led by Chrysalis Investments and Target Global. This brings Wefox's total funding to over EUR 1.6 billion (~USD 1.7 billion).

The funds will be utilized to support Wefox's restructuring efforts, which include 1) replacing CEO Mark Hartigan by the end of 2024 and 2) exploring the potential sale of its e-bike insurance subsidiary, Assona, to raise at least EUR 50 million (~USD 53.8 million).

Analyst QuickTake: Wefox has been facing financial difficulties, losing over EUR 100 million (~USD 107.3 million) in 2023, with projected capital needs of up to EUR 70 million (~USD 75.3 million) in 2024. In May 2024, the company issued an insolvency warning , with plans to shut down operations in Germany, sell a portion of its business in Poland, and dissolve its joint venture in Switzerland. This situation is further complicated by the rejection of a proposal from Wefox's largest investor, Mubadala, to sell the company to the UK's Ardonagh Group for EUR 550 million (~USD 591.6 million), which was opposed by Wefox's founders and early backers.