Former Insurance Unicorn Wefox in Talks about €150m Refinancing

Wefox, the once-prominent European insurance technology company, is in talks to secure a €150m refinancing package as it struggles with financial difficulties.

The company, which was once valued at $4.5bn, is aiming to raise between €60m and €80m through a fresh equity sale, primarily from existing shareholders, including Chrysalis and Target Global.

The funding is intended to avoid the need to sell one of its most valuable assets, TAF, a subsidiary.

In addition to the equity raise, Wefox plans to refinance a €70m revolving credit facility. The deadline for investors to express interest in the share sale is Friday.

This move comes after Wefox warned earlier this year that it could run out of money within months. However, securing this capital would provide the company with more stability in the medium term.

Wefox has been struggling with losses in several key markets, including Italy, though its operations in the Netherlands remain profitable.

Despite these challenges, the company continues to have more than 2 million customers and is backed by prominent investors like Mubadala, Barclays, and JP Morgan.

The company was once seen as a major fintech success, having raised large funding rounds, including $400m in 2022, but its valuation has since dropped below the $1bn threshold required to maintain its status as a "unicorn" startup.
Source: Sky news
Edited by: Evans Momodu