REX: Wefox Announces a Funding Round, Aims for European Expansion
FACTS
- Wefox, ex-FinanceFox, highlights an innovative model building on both brokerage and insurance industries, services and account aggregation.
- In order to boost their development, they just announced a $funding round led by from Abu Dhabi’s state investor Mubadala Investment Company, Goldman Sachs and the Chinese VC Creditease. Their existing investors also took part in this funding round: AngelList, Horizons Ventures, Idinvest Partners, Seedcamp, Speedinvest and Target Global.
- Wefox’s specifics: a two-fold BtoC and BtoBtoC approach
- BtoBtoC: Wefox designed a platform enabling insured parties to interact with brokers and insurance companies. The brokers can then talk their customers into downloading the app to centralise and manage all their insurance contracts. This offer also enables brokers to digitalise their offer, while still building on human assistance.
- BtoC: through their brand One, Wefox also acts as an insurance company on their own right and features various contracts from Wefox’s management marketplace, alongside other insurance companies.
Key Figures
- Yearly revenue: $40M
- The InsurTech was founded in 2014 and is now valued at roughly $1Bn
- $158.5M raised since launch
- 400,000 customers
- 1,500 Insurance brokers using Wefox
- 80% of their customers register from Wefox through one of their brokers; the remaining 20% subscribe through One
CHALLENGES
- Reaching international scale. This funding round helps Wefox consolidate their offer outside of Germany, Switzerland and Austria where they are already well-established. France, Spain, The Netherlands, Belgium and Luxembourg are among primary targets. This InsurTech also plans to aim for China.
MARKET PERSPECTIVE
- Wefox used to rely on the brand name FinanceFox. In 2016, they raised $28 million to boost their model.
- Wefox entered the Asian market in 2018 in partnership with SBI.
- Recent funding rounds by Raisin and Wefox show that Berlin has become a key place for European FinTechs.