Wefox, a digital insurance company in Berlin, has raised $400 million in a Mubadala Investment Company-led investment round that will help it grow across Europe and new markets in the US and Asia.
The series D growth financing raised the company’s “post-money valuation” to $4.5 billion from the $3bn it reached in June last year, wefox said in a statement on Tuesday.
Eurazeo, LGT, Horizons Ventures, Omers Ventures and Target Global were among investors who participated in the funding, comprising both debt and equity components.
“This new valuation ... is a clear validation of our business model, which focuses on indirect distribution via agents rather than direct,” said Julian Teicke, chief executive and founder of wefox. "This makes our business one of the most credible InsurTechs in the market right now."
The company, which will use part of the proceeds to enhance its product portfolio, generated $320m in revenue last year.
In the first four months of this year, wefox earned more than $200m in revenue, which keeps it on track to achieve a $600m target by the end of 2022, Mr Teicke said.
Digital insurance companies that offer simplified claim processes and improved communication have grown at a brisk pace during the Covid-19 pandemic. Rapidly evolving InsurTech solutions and increasing automation is expected to further drive market growth.
The global market for digital insurance platforms, estimated at about $102bn in 2020, is projected to reach $169bn by 2026, growing at more than 9 per cent annually, a report by consultancy Research and Markets found.
Allied Market Research expects the market to reach close to $300bn in value by the end of this decade, at a compound annual growth rate of more than 11 per cent between 2021 and 2030.
Global investment in the InsurTech sector hit an all-time high of $15.8bn in 2021, reinsurance broker Gallagher Re said in April.
The sector attracted more capital inflows last year than in 2020 and 2019 combined, registering a record 564 InsurTech deals, the report said.
Founded in 2015 by Mr Teicke, Fabian Wesemann and Dario Fazlic, wefox is a full-stack InsurTech that sells insurance through intermediaries rather than directly to customers. Wefox is also the parent company of wefox Insurance, which is its in-house regulated insurance carrier.
The company raised $650m in its series C funding round in June last year. Its $235m financing in 2019 was jointly led by Mubadala and Omers.
“Unlike most direct-to-consumer InsurTechs, wefox acts as an ecosystem enabler – empowering the various distribution channels instead of competing with them,” Ibrahim Ajami, head of Mubadala Ventures, said.
“This model has allowed wefox to scale quickly and sustainably, providing brokers and customers alike a platform that seamlessly digitises the insurance market.”
This new valuation of $4.5bn is a clear validation of our business model, which focuses on indirect distribution via agents rather than direct
Julian Teicke,
chief executive and founder of wefox
With an asset base of $248bn, Mubadala invests on behalf of the Abu Dhabi government and is at the heart of the emirate’s plans to diversify its revenue base and generate income from sources other than oil.
In recent years the sovereign fund has pivoted towards investments in health care, life sciences, technology, consumer-focused businesses, renewable energy and the mobility sectors.
Wefox has more than two million customers and aims to expand its client base to three million by the end of this year. Last December, the company appointed former Samsung Electronics president Young Sohn as chairman.
Mr Wesemann, who is also chief finance officer of the wefox, said: “Wefox is in the strongest position ever.
"In successfully closing this funding round, we reinforce our strategy and enable faster acceleration on our path to greater revenue and profit.”
Company Profile:
Name: The Protein Bakeshop
Date of start: 2013
Founders: Rashi Chowdhary and Saad Umerani
Based: Dubai
Size, number of employees: 12
Funding/investors: $400,000 (2018)
ENGLAND SQUAD
Joe Root (captain), Dom Sibley, Rory Burns, Dan Lawrence, Ben Stokes, Ollie Pope, Ben Foakes (wicketkeeper), Moeen Ali, Olly Stone, Chris Woakes, Jack Leach, Stuart Broad
Fixtures and results:
Wed, Aug 29:
- Malaysia bt Hong Kong by 3 wickets
- Oman bt Nepal by 7 wickets
- UAE bt Singapore by 215 runs
Thu, Aug 30: UAE v Nepal; Hong Kong v Singapore; Malaysia v Oman
Sat, Sep 1: UAE v Hong Kong; Oman v Singapore; Malaysia v Nepal
Sun, Sep 2: Hong Kong v Oman; Malaysia v UAE; Nepal v Singapore
Tue, Sep 4: Malaysia v Singapore; UAE v Oman; Nepal v Hong Kong
Thu, Sep 6: Final
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Ten tax points to be aware of in 2026
1. Domestic VAT refund amendments: request your refund within five years
If a business does not apply for the refund on time, they lose their credit.
2. E-invoicing in the UAE
Businesses should continue preparing for the implementation of e-invoicing in the UAE, with 2026 a preparation and transition period ahead of phased mandatory adoption.
3. More tax audits
Tax authorities are increasingly using data already available across multiple filings to identify audit risks.
4. More beneficial VAT and excise tax penalty regime
Tax disputes are expected to become more frequent and more structured, with clearer administrative objection and appeal processes. The UAE has adopted a new penalty regime for VAT and excise disputes, which now mirrors the penalty regime for corporate tax.
5. Greater emphasis on statutory audit
There is a greater need for the accuracy of financial statements. The International Financial Reporting Standards standards need to be strictly adhered to and, as a result, the quality of the audits will need to increase.
6. Further transfer pricing enforcement
Transfer pricing enforcement, which refers to the practice of establishing prices for internal transactions between related entities, is expected to broaden in scope. The UAE will shortly open the possibility to negotiate advance pricing agreements, or essentially rulings for transfer pricing purposes.
7. Limited time periods for audits
Recent amendments also introduce a default five-year limitation period for tax audits and assessments, subject to specific statutory exceptions. While the standard audit and assessment period is five years, this may be extended to up to 15 years in cases involving fraud or tax evasion.
8. Pillar 2 implementation
Many multinational groups will begin to feel the practical effect of the Domestic Minimum Top-Up Tax (DMTT), the UAE's implementation of the OECD’s global minimum tax under Pillar 2. While the rules apply for financial years starting on or after January 1, 2025, it is 2026 that marks the transition to an operational phase.
9. Reduced compliance obligations for imported goods and services
Businesses that apply the reverse-charge mechanism for VAT purposes in the UAE may benefit from reduced compliance obligations.
10. Substance and CbC reporting focus
Tax authorities are expected to continue strengthening the enforcement of economic substance and Country-by-Country (CbC) reporting frameworks. In the UAE, these regimes are increasingly being used as risk-assessment tools, providing tax authorities with a comprehensive view of multinational groups’ global footprints and enabling them to assess whether profits are aligned with real economic activity.
Contributed by Thomas Vanhee and Hend Rashwan, Aurifer
Our legal columnist
Name: Yousef Al Bahar
Advocate at Al Bahar & Associate Advocates and Legal Consultants, established in 1994
Education: Mr Al Bahar was born in 1979 and graduated in 2008 from the Judicial Institute. He took after his father, who was one of the first Emirati lawyers
Off-roading in the UAE: How to checklist
Living in...
This article is part of a guide on where to live in the UAE. Our reporters will profile some of the country’s most desirable districts, provide an estimate of rental prices and introduce you to some of the residents who call each area home.
THE SPECS
Engine: 1.5-litre turbocharged four-cylinder
Transmission: Constant Variable (CVT)
Power: 141bhp
Torque: 250Nm
Price: Dh64,500
On sale: Now
Springtime in a Broken Mirror,
Mario Benedetti, Penguin Modern Classics
The Bio
Favourite vegetable: “I really like the taste of the beetroot, the potatoes and the eggplant we are producing.”
Holiday destination: “I like Paris very much, it’s a city very close to my heart.”
Book: “Das Kapital, by Karl Marx. I am not a communist, but there are a lot of lessons for the capitalist system, if you let it get out of control, and humanity.”
Musician: “I like very much Fairuz, the Lebanese singer, and the other is Umm Kulthum. Fairuz is for listening to in the morning, Umm Kulthum for the night.”
Sweet%20Tooth
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The Bio
Favourite place in UAE: Al Rams pearling village
What one book should everyone read: Any book written before electricity was invented. When a writer willingly worked under candlelight, you know he/she had a real passion for their craft
Your favourite type of pearl: All of them. No pearl looks the same and each carries its own unique characteristics, like humans
Best time to swim in the sea: When there is enough light to see beneath the surface
Our legal columnist
Name: Yousef Al Bahar
Advocate at Al Bahar & Associate Advocates and Legal Consultants, established in 1994
Education: Mr Al Bahar was born in 1979 and graduated in 2008 from the Judicial Institute. He took after his father, who was one of the first Emirati lawyers
Dubai Bling season three
Cast: Loujain Adada, Zeina Khoury, Farhana Bodi, Ebraheem Al Samadi, Mona Kattan, and couples Safa & Fahad Siddiqui and DJ Bliss & Danya Mohammed
Rating: 1/5
The specs
Engine: 2.0-litre 4-cylinder turbo
Power: 240hp at 5,500rpm
Torque: 390Nm at 3,000rpm
Transmission: eight-speed auto
Price: from Dh122,745
On sale: now
