Wefox, A $4.5 Billion Insurance Company, receives $55 Million in New Funding from Deutsche Bank and UniCredit

Wefox, the German InsurTech valued at $4.5 billion, has secured $55 million in fresh funding through a debt financing deal with Deutsche Bank and UniCredit, according to undisclosed sources. The convertible debt agreement implies that the debt will be converted into equity during Wefox’s next equity funding round.

This recent funding follows a $55 million debt round from JPMorgan and Barclays, as well as a $55 million internal fundraising earlier in the year. Despite not raising equity in this round, Wefox’s valuation remains at $4.5 billion. The total funds raised by Wefox this year amount to $160 million, signaling confidence in the InsurTech industry despite challenging economic conditions. The latest funds will support Wefox’s global expansion and strategic focus on mergers and acquisitions.

Wefox differentiates itself from other InsurTech platforms like Lemonade and Getsafe by collaborating with a network of brokers, both in-house and external, to distribute its insurance products. Additionally, Wefox is venturing into the “affinity” distribution model, selling its insurance software to businesses for a subscription fee. This approach involves offering insurance products at the point of sale for various businesses, such as online car dealers.

Founded eight years ago, Wefox has gained support from prominent venture capital firms, including Salesforce Ventures, Target Global, Seedcamp, Speedinvest, and Horizon Ventures. Traditional financial institutions such as UBS, Goldman Sachs, Mubadala Capital Ventures, and Jupiter Asset Management are also among its backers. Wefox’s investment in artificial intelligence is notable, with a focus on automating policy applications and customer service. The company operates three tech hubs dedicated to AI in Paris, Barcelona, and Milan.

The funds raised are expected to propel Wefox’s growth initiatives and reinforce its position in the InsurTech market, showcasing resilience and optimism amid economic uncertainties.

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