According to Sky News, the deal will see Searchlight refinance Wefox’s existing bank debt and inject fresh capital into the business. The funding package is expected to reach up to €170 million, including a potential equity raise of between €80 million and €100 million.
Founded in 2015, wefox is a European insurtech company focused on driving the digital transformation of the insurance industry. The company, which has had a turbulent 18 months, including the threat of liquidation, holds the record for the largest funding round ever generated by an insurtech – US$650 million in May of 2021.
The move comes as Wefox seeks to strengthen its financial position and navigate the current economic climate. Existing shareholders, including Chrysalis Investments and Target Global, are also expected to participate in the equity raise.
The funding round is crucial for Wefox, as it aims to avoid a potential fire-sale of its assets, particularly its valuable subsidiary, TAF.
The deal is expected to be finalised in the coming weeks.
Separately, wefox Holding AG announced the sale of wefox Insurance AG, its Liechtenstein-based insurance company, to a Swiss consortium led by BERAG, an independent Swiss pension services provider.
The transaction follows wefox’s strategic decision to streamline its business and divest non-core assets. BERAG, an existing partner of wefox Insurance AG, will continue to serve as the primary contact for brokers and customers in Switzerland.
The sale is subject to regulatory approval and is expected to be completed in the first half of 2025.
Disclaimer: This information is based on reports from Sky News and may be subject to change.
