By David G. Barry
Mubadala Investment Company, which invests on behalf of the Government of Abu Dhabi, believes it has an outlier in its portfolio.
At a time when many venture-backed companies are raising new rounds at reduced valuations, wefox, a German insurtech company, has done the opposite in a round led by Mubadala.
The Berlin-based company raised $400 million in debt and equity at a valuation of $4.5 billion. The Series D round comes a year after wefox was valued at $3 billion after completing a $650 million round. Mubadala took part in that round as well as the company’s $235 million Series B round done in 2019.
Joining Mubadala in the new round were OMERS Ventures – the venture arm of the Canadian pension plan – LGT, EDBI, Horizons Ventures and Target Global.
wefox is a fully licensed digital insurance company that sells insurance through intermediaries and not directly to consumers. It has more than 2 million customers and had revenue of $320 million in 2021. The company said it is on track to have 3 million customers and $600 million by the end of the year. wefox intends to use the funding for product development and to expand across Europe and ultimately Asia and the United States.
In a prepared statement, Ibrahim Ajami, Mubadala’s head of ventures and growth, said that unlike “most direct-to-consumer insurtechs, wefox acts as an ecosystem enabler – empowering the various distribution channels instead of competing with them. This model has allowed wefox to scale quickly and sustainably, providing brokers and customers alike a platform that seamlessly digitizes the insurance market.”
Mubadala has assets of $284 billion and interests across multiple sectors and asset classes. In addition to Abu Dhabi, it has offices in London, Rio de Janeiro, Moscow, New York, San Francisco and Beijing.