WeFox raises $400m for planned expansion

WeFox, a digital insurance company based in Berlin, closed a $400 million investment round on Tuesday and received a $4.5 billion value.

Even though it’s less than the rumoured $5 billion to $6 billion valuation the insurtech was after, it’s still an increase of 50% over WeFox’s prior valuation and stands in stark contrast to dropping valuations across much of the fintech industry.

Publicly traded fintech equities are down 45% year to date, while Lemonade, a rival insurtech, is down 52%. Affirm Holdings, the market leader in “buy-now, pay-later,” has experienced an almost 90% decline from its 2021 peak.

WeFox now has operations in five, and soon to be six, European nations. With the fresh funding infusion, the company hopes to grow in the US and Asia.

“We’re at critical size, we’ve proven the unit economics and we do believe that we can roll this out on a global scale,” WeFox CEO Julian Teicke said in an interview with Forbes. “We could do with additional capital because we have a well-oiled machine, we know exactly where to invest.”