Insurtech platform wefox has secured a total of €151 million in new funding, comprising a €76 million capital raise, primarily from existing investors, and a €75 million refinancing of an existing credit facility through Searchlight Capital Partners’ credit fund, Searchlight Opportunities Fund II.
This follows the completion of the Group’s business restructuring programme, which included the sale of its Liechtenstein based wefox Insurance AG, along with its Italian entities wefox MGA S.r.l. and wefox Services Italy S.r.l.
The company stated that the funding places it on a clear path to achieving profitability in 2025.
The new funding will support wefox’s operations in Austria, the Netherlands and Switzerland, focusing on the development of its asset light Managing General Agent model and the expansion of its smart insurance distribution business internationally.
In Austria, wefox operates what it describes as the most advanced digital platform for retail insurance brokers, establishing itself as the leading wholesale broker.
In the Netherlands, it holds the top position in the term life insurance market under the TAF brand through a full service MGA model.
In Switzerland, the company is expanding its position in retail insurance distribution, aiming to offer comprehensive risk advice for individuals.
wefox plans to deepen its partnerships with insurance providers and scale its local distribution platforms to support sustainable revenue growth and margin improvement across its markets.
Following the refinancing, the board of directors of wefox Holding AG has been restructured. Prateek Puri, Partner at Searchlight Capital Partners, and Joachim Müller, Chief Executive Officer, have joined the board.
Julian Teicke, Fabian Wesemann, Dario Fazlic and Nikolaus Frei have stepped down.
Commenting on the changes, Müller said:
“Changing customer needs, new regulatory requirements, and new technological capabilities are transforming the insurance value chain. Our strengths and our focus on MGA and smart distribution services make us an attractive partner for risk carriers and downstream brokers. We believe that our compelling offering and our smart, asset light business model will create value for our customers, our business partners and our investors.”
Featured image credit: Edited by Fintech News Switzerland, based on image by Freepik
