Germany-based insurtech firm wefox has secured $400m in a Series D funding round, raising its post-money valuation to $4.5bn.

Wefox plans to use the new infusion, which includes both equity and debt, to develop products and expand its presence across Europe, Asia and the US.

Mubadala Investment Company led the latest round. Other companies such as Eurazeo, LGT, Horizons Ventures, OMERS Ventures and Target Global also joined the fundraising.

Wefox CEO and founder Julian Teicke said: “This new valuation of $4.5bn is a clear validation of our business model, which focuses on indirect distribution via agents rather than direct.

“This makes our business one of the most credible insurtechs in the market right now.”

During the first four months of 2022, wefox generated over $200m in revenues, which puts it on track to reach the $600m target by the end of the year.

Teicke added: “wefox now has more than two million customers and we aim to reach three million customers by the end of this year.

“It is further proof that wefox is trusted and testament to our focus on prediction and prevention, rather than the traditional approach of repair and replace.

“We are making insurance ten times better through technology. As a result, our customer experience is simple and fit for purpose for the way we live today.”

Wefox currently has a workforce of over 1,300 and plans to increase the headcount to 2,000 by the end of this year.

Mubadala Ventures head Ibrahim Ajami said: “Unlike most direct to consumer insurtechs, wefox acts as an ecosystem enabler – empowering the various distribution channels instead of competing with them.

“This model has allowed wefox to scale quickly and sustainably, providing brokers and customers alike a platform that seamlessly digitises the insurance market.”

The firm’s latest valuation marks a 50% rise on its previous valuation of $3bn in its Series C round.

In June last year, Wefox obtained $650m in the Series C financing round led by Target Global.