Searchlight Shines on £140m Funding Package for Insurer Wefox

By Evans Momodu
1 minute read


Wefox, the European insurance technology company, is nearing a major refinancing deal led by private equity firm Searchlight Capital Partners, which could amount to €170m (£141m).

Searchlight has proposed refinancing Wefox’s existing bank debt to help the company avoid selling key assets, with the deal likely to include an equity raise of between €80m (£66.5m) and €100m (£83.1m).

Existing shareholders, including Chrysalis Investments and Target Global, are expected to support the funding round. If successful, the refinancing could be announced as early as next month.

The new funding would allow Wefox to retain ownership of TAF, a valuable subsidiary, while focusing on stabilising its financial situation.

Recently, Wefox agreed to sell its insurance carrier arm to Swiss companies led by BERAG and also sold Assona, a subsidiary specialising in e-bike insurance.

Founded in 2015, Wefox provides insurance products through brokers and has more than 2 million customers. Once valued at $4.5bn (£3.6bn), its valuation has significantly dropped below the $1bn (£796m) unicorn threshold due to losses in markets like Italy.

Wefox is backed by investors including Mubadala, Barclays, and JP Morgan. The company has raised substantial funds in the past, including a $400m round in 2022, but now faces challenges in maintaining profitability and growth amid market pressures.
Source: Sky news