German insurtech startup Wefox is holding advanced talks to raise funding that is expected to take its valuation to between $5bn and $6bn, reported Bloomberg, citing people with aware of the matter.
The firm is likely to finalise terms of the fundraising in the coming weeks.
The company is looking to raise several hundred million of dollars, the sources said.
There is a possibility that the terms of the fundraising could change, and the discussions may not lead to an agreement.
A Wefox representative refused to clarify on the development, reported the media outlet.
In June 2021, Wefox raised $650m in a Series C round led by Target Global.
This round took the insurtech’s valuation to $3bn.
With the $650m, Wefox planned to expand its presence to more countries, and add life and health insurance products to its portfolio.
Abu Dhabi sovereign fund Mubadala Investment, Salesforce Ventures, Ashton Kutcher’s Sound Ventures and Horizons Ventures are the company’s current investors.
The latest news comes at a time when startups across the world are being considered as risky investment.
Wefox was founded in 2014 by ex-Groupon employee Julian Teicke along with former Deutsche Bank AG analyst Fabian Wesemann and other entrepreneurs.
According to the company site, it provides insurance products in several markets including Germany, Poland and Switzerland.
The startup distributes its insurance policies through a network of agents rather than selling its products directly to consumers.
Wefox’s policies are backed by Munich Re with reinsurance coverage.
