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Chinese fintech firm CreditEase joins $125 million round of European insurtech startup
This article by Sophy Yang originally appeared on China Money Network, the best data intelligence platform tracking China’s tech and venture capital markets (access requires subscription).
Chinese fintech conglomerate CreditEase announced on Wednesday that its investment unit, CreditEase FinTech Investment Fund (CEFIF), participated in a $125 million Series B financing round of Berlin-based insurance technology firm Wefox Group.
The investment also saw the participation of European Ventures Fund, a newly-launched investment vehicle of Abu Dhabi’s sovereign wealth fund Mubadala.
Founded in 2014, Wefox serves as a digital platform that helps customers, brokers, and insurance companies manage their insurance and financial products and services more efficiently. The company said in the statement that it has grown the revenue to about $40 million, while serving more than 1,500 brokers and over 400,000 customers.
“Wefox Group is a proven insurtech innovator with visionary management leadership and strong technology and AI (artificial intelligence) capabilities to provide consumers with more seamless and personalized insurance policy experience,” said Dennis Cong, managing director of CEFIF.
Proceeds of this round will be used for the company’s expansion into the European broker market and creating an all-in-one insurance platform, in which all interactions are personalized.
CEFIF was launched in February 2016 by CreditEase as a venture fund investing in fintech companies globally. With an equivalent of $1 billion in the total committed capital, CEFIF has poured money into more than 40 companies in areas ranging from wealth management, alternative lending, insurtech, payments, and enterprise services. Its portfolio companies include Chinese online securities brokerage firm Tiger Brokers, used-car trading platform operator Dasouche, and cloud-based business network Tradeshift.
The fund joined a $100 million funding round in New Jersey state-chartered commercial banking firm Cross River Bank in December 2018, after it led a $62 million Series C round in San Francisco-based online lending startup Upgrade in August 2018.