BERLIN Reuters Digital insurance startup Wefox said on Tuesday it had raised 650 million from investors, in what it called a recordbreaking round for a socalled insurtech company that valued the business at 3 billion.
The funding means Berlinbased Wefox has grown in value threefold since tapping investors in 2019. The move follows big raises by local startups Trade Republic, an online stockbroker, and quickdelivery firm Gorillas.
Wefox founder and CEO Julian Teicke told Reuters the Series C round had drawn strong investor demand because Wefox was growing both rapidly and more profitably than rival online insurers that are losing money.
He put that down to Wefoxs strategy of offering digital tools that enable insurance agents to streamline and automate labour intensive processes. Agents sell nine out of every 10 policies in Europe, leaving directtoconsumer competitors like Lemonade fighting for a smaller piece of the market.
Most insurtech says that insurance agents are dead. We say They are more alive than ever, Teicke said.
Wefox, which is present in Germany, Switzerland and Poland, will use the money raised for European expansion.
The company aims to increase revenues to 350 million this year, from 143 million in 2020, as it builds its branded sales team and product portfolio to complement the existing platform that hosts independent insurance brokers.
CFO and cofounder Fabian Wesemann said Wefoxs ownbrand portfolio, launched in 2018, already accounted for 30…