IPO & Funding Activity
WeFox, an insurance technology player based in Germany, raised $650m at a $ 3B valuation. As Lemonade is doing, it seeks to “[tackle] that $5.2 trillion industry that has been stuck in the pre-internet era”.
However, the company is not relying on the conventional direct-to-consumer model most start-ups use. Rather, it relies on a network of 700 agents and partners with over 5,000 brokers who can distribute the products.
WeFox also shows that a so-called “disruptor” can be profitable early on:
“In 2020 alone, the company generated $140 million in revenue. If you look at Wefox Insurance, the company’s insurance carrier, the company reported a profit for 2020.” by Romain Dillet for TechCrunch
In the future, the company plans to sustain it growth by adding new products while improving profitability by cutting down on administrative costs.
Sprinklr Goes Public
Sprinkr is a New York-based software company that develops a customer experience management platform. Its products combine different social media marketing, content management and collaboration tools. It was founded in 2009 as was valued at $ 2.7B in September 2020.
- Now, the company is looking to go public as its sales reached $ 389m for the year ended January 31, 2021
- As a slight disappointment to growth-seeking investors, Sprinklr’s sales only grew by 19% year-on-year despite spending $ 189m in marketing in 2020
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