The Series D funding round has increased the valuation of the company from USD3 billion to USD4.5 billion in just 12 months, against a downward trend being experienced in the Insurtech sector and the tech sector at large.
CEO and Co-founder of WeFox, Julian Teicke, said that the new valuation of USD4.5 billion is a validation of the company’s business model which focuses on indirect distribution through agents rather than direct to consumer. He also said that this model makes the company one of the most credible Insurtech companies in the market currently.
Teicke added that the company has continued to double its revenues, with 2021 witnessing a revenue of USD320 million. He added that the company generated more than USD200 million in revenue in the first four months of 2022, keeping it on track to achieve its revenue target of USD600 million for the year 2022.
The CEO mentioned that WeFox currently has more than 2 million customers, and aims to reach 3 million customers by the end of 2022. He added that the company was making insurance ten times better through the use of technology, and that the customer experience was simple, and tailored for current lifestyles.
The company aims to utilise the funds for product development, and expansion plans across Europe, followed by Asia and the US.
CFO and Co-founder of WeFox, Fabian Wesemann, stated that the company was in a strong position, and the successful closing of the funding round reinforced its strategy and enabled acceleration on its path to better revenues and profit.
He added that the investment was a validation of its indirect business model, which allows the company to be cash efficient. He went on to say that the firm has a proven business model and track record to replicate on a global scale, for which the additional investment will be utilised.
Wesemann further added that the company model enables it to deliver a strong financial profile with a clear path to profitability, a vital requirement for the current economic climate.
Head of Mubadala Ventures, Ibrahim Ajami, said that WeFox acts as an ecosystem enabler by empowering distribution channels instead of competing with them. He said that this model has allowed WeFox to scale rapidly and in a sustainable manner, providing customers and brokers with a platform that effortlessly digitizes the insurance market.
WeFox continues to remain one of the few tech companies that is actively recruiting despite the current economic climate, employing more than 1300 people, up from 550 just a year ago. WeFox intends to employ 2000 people by the end of 2022.
Earlier this year, WeFox appointed Prince Max von zu Liechtenstein to the board alongside former Klarna executive, Hanna Jacobsson. Last year, WeFox appointed Young Sohn, former president of Samsung Electronics, as Chairman of the board.
About Mubadala Investment Company
Mubadala Investment Company is a sovereign investor that manages a global portfolio, with the intention of generating sustainable financial returns for the Abu Dhabi government.
Mubadala Investment Company manages a USD284 billion portfolio, spanning six continents across multiple sectors and asset classes. The company leverages its deep expertise and partnerships to power sustainable growth and profits, and supports the global integration and diversification of the UAE economy.
WeFox was founded in 2015 by Julian Teicke, Fabian Wesemann and Dario Fazlic. WeFox is a full-stack insurtech company with an indirect distribution model. The mission of the company is to keep people safe by making insurance ten times better through the use of technology. WeFox is the parent company of WeFox Insurance, which is the in-house regulated insurance carrier.