Wefox is an insurance tech startup that sells a variety of insurance products through a combination of internal and in-house brokers. The company’s way of increasing the number of users is getting third-party brokers to advise Wefox to their clients. The main advantage of this model is the acquiring customer cost, as it becomes much lower as brokers, agents, and partners do a significant part of the work for Wefox.
The funding round was led by Mubadala Investment Co., the Abu Dhabi-based sovereign. The money raised will be used for international expansion, including such countries as France, the UK, Netherlands, and Spain. Besides, Wefox is going to invest in platform building and employee hiring. The company plans to add more than 700 people.
Wefox, Berlin, Germany was founded by Julian Teicke and Fabian Wesemann in 2015. The startup has already provided its services in Germany, Italy, Austria, Poland, and Switzerland. In Germany, Wefox has a network of 3000 independent brokers, while the company trained its brokers in other markets. “Wefox’s ‘secret sauce’ is in its business model of indirect distribution, which has enabled the company to scale faster than any other insurtech in the world. Our model is unique in the insurtech space, since all others go direct to consumer,” Julian Teicke, Wefox’s CEO. Among the insurance products provided are household, car, liability, and health insurances. Wefox is planning to add building, e-bike, and accident insurance as well.
