Insurance startup Wefox has again demonstrated its stature in the market after maintaining its $4.5 billion valuation as it successfully closed a new funding round of $110 million. The funds were divided into $55 million in equity as existing investors and new investors Squarepoint stepped in, while the remaining $55 million came in debt funding from Barclays and JPMorgan.
Wefox, founded in 2015, offers direct-to-consumer insurance products, as well as a platform that connects customers to brokers, allowing users to compare prices and customize their insurance policies. The company has stated its ambition to become the “Stripe of insurance” in hopes of riding the wave of success that Irish-American payments service has enjoyed.
The coronavirus crisis is what caused Wefox to restructure its operations and organization in pursuit to become profitable. In order to temporarily cut costs, some staff members were laid off, and CEO Julian Teicke is now focused on ensuring that only profitable investments are being made. The digital platform has been prioritized, and the company is even in the market for acquisitions to further expand its insurance distribution network.
The new funding will also be used for AI development, and in a statement to Insider, Teicke expressed that he believes the current environment is rife with opportunity. If all goes to plan, the company hopes to be profitable sometime by the end of the year.
Wefox is backed by major investors like Target Global and Mubadala. The company is now headed by Julian Teicke, who is a respected figure in insurance tech with a wealth of experience in marketing, business development, and strategic corporate investments. With a clear focus on making the business profitable, it’s likely that Wefox’s current valuation will look very different by the end of 2021.
