German insurance technology group, Wefox, has secured $55 million in fresh funding from Deutsche Bank and UniCredit, according to anonymous sources familiar with the deal. The company, which sells insurance plans through an online platform, raised the funds in a debt financing deal from the two European lenders. The funding was structured as a convertible debt agreement, meaning it will be converted into equity when Wefox raises more cash in the future. This recent round of funding follows a $55 million debt round from JPMorgan and Barclays, as well as a $55 million internal fundraising earlier this year. Despite not raising equity, Wefox’s valuation remains unchanged at $4.5 billion.
With this funding, Wefox aims to accelerate its global expansion plans and focus on mergers and acquisitions. Unlike other insurtech platforms, such as Lemonade in the US or Getsafe in Germany, Wefox works with a network of brokers to distribute its insurance products. Additionally, Wefox is entering the “affinity” distribution model by selling its insurance software to businesses for a subscription fee, allowing them to offer insurance at the point of sale.
Wefox has received backing from prominent venture capital firms, including Salesforce Ventures, Target Global, Seedcamp, Speedinvest, and Horizon Ventures. It also has investments from UBS, Goldman Sachs, Mubadala Capital Ventures, and Jupiter Asset Management. The company is investing heavily in artificial intelligence to automate policy applications and customer service, with three tech hubs dedicated to AI in Paris, Barcelona, and Milan. The latest funding round brings Wefox’s total amount raised this year to $160 million, demonstrating confidence in the insurtech industry during challenging macroeconomic conditions.
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