There’s a new major player on Germany’s flourishing fintech/insurtech scene: the Berlin-based startup wefox has brought in EUR 110 million in equity capital – more than any other German insurance startup – boosting total investments to some EUR 151 million. The new financing round was led by Mubadala Ventures, the sovereign wealth fund of Abu Dhabi, and included Japan’s Softbank, the Chinese fintech Creditease and the US investment bank Goldman Sachs.
The company’s vision is to allow customers, whenever a risk presents itself, to quickly obtain insurance coverage by monitoring their location and environment via smartphone, networked cars and sensors within the home. The company has grown into a group of three related companies: “wefox” acts as a broker on a digital marketplace connecting insurers, insurance brokers and customers; “One” is a primary insurer operated by wefox; and “Nexus” operates as a sales platform.
Among other things, the fresh funds will help expand the digital insurance marketplace to other European countries and then Asia. According to Barkow Consulting, only three other German fintechs have raised more money: the smartphone bank N26 (EUR 441 million), the online lender Kreditech (EUR 257 million), and the deposit marketplace WeltSparen (EUR 168 million), which operates internationally as Raisin.