Wefox, an insurance technology company founded by former employees of Deutsche Bank and Groupon, has raised $400 million in a $4.5 billion funding round led by Mubadala Abu Dhabi-based sovereign wealth fund.

According to a statement issued by Wifox, today, Tuesday, its new valuation represents a 50% increase over the previous round a year ago, when it was valued at $3 billion.

The Berlin-based insurance technology company revealed that the money will go towards developing the platform, and expanding into new markets, including the Netherlands, France, Spain and Britain. It will also give the company an opportunity to attract new employees, by targeting the competencies abandoned by competitors during the recent wave of layoffs in the technology sector in Europe.

40 billion dollars in losses for insurance companies in Germany due to floods during 2021

Mubadala and EQT to buy Swedish medical shipping company for $3 billion

The company's CEO, Julian Teke, said in an interview: We are witnessing more highly qualified resumes available for employment now, as the crisis gives us many opportunities that were not available before. Wifox plans to add 700 employees by the end of the year.

Tiki, a former sales manager at Groupon, founded WiFox in 2015 in partnership with Fabian Wezemann, a former analyst at Deutsche Bank, and investor Dario Vaslik.

The startup provides insurance products to clients in Germany, Austria, Italy, Switzerland and Poland. These include auto, home, health, and financing risk insurance. It is looking to expand this year in accident insurance, construction and e-bikes.