It has been reported that Chrysalis Investments and Target Global submitted a term sheet to Wefox this week, which argues that they would preserve value better for the shareholder base.
The €25 million investment would also include funding from a number of Wefox’s other existing shareholders and would serve as a bridge until the group is able to sell Assona, a subsidiary which insures electric bikes, insiders have said.
As Insurtech Insights reported last week, Wefox, previously one of Europe’s hottest insurtech startups, has been struggling to survive. The company has been severely damaged in multiple key markets, including Italy, though its operations in the Netherlands remain profit-making.
The proposal is designed to steer the company towards achieving profitability; Chrysalis and Target believe this is possible at some point next year. Mubadala, the Abu Dhabi state fund, would prefer to sell a major part of Wefox to Ardonagh due to its two-times liquidity preference, as this would preserve its returns on investment.
Wefox was valued at $4.5bn (£3.6bn) in a funding round less than two years ago and counts Barclays and JP Morgan among its lenders.
Chrysalis declined to comment.
Source: SkyNews
