German startup Wefox has raised a $650 million Series C funding round led by Target Global. Following this funding round, the company has reached a post-money valuation of $3 billion. Wefox is a digital insurer focused on personal insurance products, such as household insurance, motor insurance and personal liability insurance.
“It’s much more than we wanted to raise initially. It was a very fast process and essentially we were oversubscribed by 4x or so,” co-founder and CEO Julian Teicke (pictured left) told me.
In December 2019, the company < a href="https://techcrunch.com/2019/12/10/wefox-unicorn/"> reported a $1. 67 billion valuation. And the company} says today’s funding stage is one of the largest Series T rounds of all time — and likely the largest Series C very big round for an insurtech company specifically.
“Almost all of the big ongoing investors are participating, ” Teicke said. OMERS Projects, G Squared, Mountain Male partners, Merian, Horizons Ventures, Eurazeo, Mubadala Capital, Salesforce Schemes, Speedinvest, CE Innovation Ultima, GR Capital and Seedcamp are all participating once again within just Wefox founding round. State of the art investors include FinTLV, The majority of & Co, LGT , its affiliated impact investing construction Lightrock, Partners Group, EDBI, Jupiter and Decisive.
“Not only have i raised a super large amount but you will also in a very fast time. It took us a total of four many months to get all commitments to be able to, ” co-founder an CFO Fabian Wesemann (pictured right) told me.
Wefox believes it can now say over and generate more and more gross sales as it scales — it merely requires needs capital to reach another level. “We’re tackling that $5. 2 trillion industry that have been stuck in the pre-internet et?. We nailed how to affect it in our core business, ” Teicke said.
But what makes Wefox different from legacy insurance companies? Wefox isn’t a direct-to-consumer underwriter. Most insurance products are even sold by agents additionally, the startup believes this isn’t heading change anytime soon.
That’s why Wefox gets 700 agents selling Wefox products exclusively. It also husband and wife with associate brokers — around 5, 000 will be able to distribute Wefox products.
“While the rest of the market seems to say that human providers are dead, we think they’re more relevant than ever, ” Teicke said.
In 2020 alone, brazil generated $140 million through revenue. If you look at Wefox Approach, the company’s insurance carrier, firm reported a profit for 2020. As for the group, “we’re visiting show overall profitability after 2023, ” Wesemann believed.
That promptly growth rate combined with a clear path to profitability means that Wefox has an ambitious roadmap. To become a full-stack insurance company licensed as part of Lichtenstein, Wefox can passport its license to other European countries. The company is currently live in 2032 markets right now and is repairing expanding to Italy today.
In addition to emerging markets, Wefox plans to provide new insurance products — property and casualty include it, pet insurance, health insurance, lifetime insurance… If you’re thinking about one insurance product, chances are Wefox is already working on it. “This year we’re launching somewhere around 20 new insurance parts, ” Teicke said.
While distribution is in fact managed decentrally with local agents talking with locally customers, insurance products are taken care of centrally. The startup categorizes products by revenue possible and goes down the list a specific product at a time.
Finally, Wefox has keen plans when it comes to reducing management costs. The company has been trading automation so that common tasks are handled by an algorithm. Currently, 80 percent of its processes are used automatically. It’s a never-ending endeavor as you have to adapt the actual processes when you launch new items.
Wefox will be working on prevention. The company gives put together an AI pros in Paris to prevent flawed things from happening from the very first. As always with insurance companies, the masturbation sleeve is all about optimizing every top part and every step of the customers’ journey to build a product that stands out from what’s already out there.