Wefox secures $110M with $55M credit facility from J.P. Morgan and Barclays

19.05.2023 18:42, Rita Longobardi

Wefox, an insurtech company, has successfully raised $110 million in funding, with $55 million coming from a credit facility provided by J.P. Morgan and Barclays.

The latest funding wefox secured highlights its business model's strength and commitment to achieving profitability. The company's exceptional performance in the first quarter of this year played a significant role in attracting these investments. The credit facility is in addition to the $55 million raised in a second closing of the Series D funding round, which saw participation from existing and new investors like Squarepoint. The funding round values wefox at an impressive $4.5 billion.

The newly secured funds will further enhance wefox's insurance and distribution business, including the recent launch of a global affinity business. Additionally, the company aims to focus on developing its technology platform.

Julian Teicke, wefox CEO and co-founder, expressed gratitude towards J.P. Morgan and Barclays for their support. Teicke believes that the backing of these renowned financial institutions will bolster the company’s plans to strengthen its insurance and distribution capabilities and continue building its platform.

Teicke further stated, "The second close of our Series D round ensures we continue focusing on building an international business with a strong path to profitability. We have already taken important measures to fortify our business for the future, and early Q1 financial performance shows that we are in good shape to navigate the challenges ahead and sustainably continue our international growth."

Fabian Wesemann, wefox CFO and co-founder, emphasized the significant shifts in the market environment over the past 18 months and highlighted the company's adaptability to capitalize on these changes. Wesemann expressed confidence in wefox's ability to steer the company towards profitability with a clear focus on unit economics, welcoming the involvement of J.P. Morgan, Barclays, and the new investors in the second closing of the funding round.

In September 2022, Julian Teicke took the stage at the TOP 100 Swiss Startup Awards to share wefox's remarkable journey – from having his elevator pitch shot down to seeing his startup become the most valuable insurtech company in the world just seven years later.
 
wefox's recent funding success and strong financial performance positions the company for continued growth and success in the insurtech industry. With its clear focus on profitability and plans for enhancing its insurance and distribution capabilities, wefox is poised to make significant strides in the market.