- The German digital insurance startup Getsafe closed a Series B funding round at $93 million.
- Getsafe is anticipating final approval for a license from BaFin.
- The company has set its sights on an initial public offering in about three years.
- See more stories on Insider’s business page.
Getsafe, a startup that wants to become Europe’s equivalent to the US digital insurance giant Lemonade, raised $93 million in fresh funding in a Series B round.
The German company targets millennials in sectors like car and rental insurance. Getsafe says it enables a “new generation of insurance customers” to buy, manage, and cancel insurance policies in an app.
Founded in 2015, the startup closed the first tranche of its Series B in December with a $30 million raise.
Getsafe had planned to close the larger, second part of the funding earlier this year but was delayed by the fallout from the Wirecard accounting-fraud scandal. (The payments processor collapsed in June 2020 owing $3.9 billion to creditors.)
Getsafe, which is headquartered in Heidelberg, has applied to Germany’s financial regulator, BaFin, for a property- and casualty-insurance license that would allow it to use its technology more widely in Germany and the rest of Europe.
The regulator has introduced more stringent checks on fintechs and insurance companies. Getsafe is expecting final approval, and is set to be among the first to receive a license following the changes.
“The German regulator has changed the requirements, so we are the first to be approved since Wirecard, but the process was really painful and longer than expected,” Christian Wiens, Getsafe’s CEO and founder, told Insider.
“We wanted to close the round before the summer, but our positioning hasn’t changed, and the BaFin license means we can expand much quicker than before.”
Getsafe declined to name the new investors in the Series B, saying only that they comprise large family offices from Germany and Switzerland, alongside investors Earlybird Abacon Capital, CommerzVentures, and Swiss Re.
The insurance startup expanded to the UK with a London office, and the UK market now accounts for about one-tenth of the company’s 250,000 customers, Wiens said.
Overseas growth has confirmed Getsafe’s hypothesis around its model, Wiens added, indicating that new European markets were under consideration for expansion next year once BaFin approves its license.
While companies in the US like Lemonade need to get regulatory approval in each state, Getsafe hopes to be able to expand faster across Europe with its new license and fresh capital. The company said the “tech monopoly of insurance” had yet to happen in Europe despite the regulatory framework for one to emerge.
Following the fundraise, Getsafe is eyeing a public debut in about three years, Wiens said. The company plans to increase its headcount and invest in new products with the new capital, which takes Getsafe to $146 million raised to date. Wiens declined to comment on valuation.
“We have a quarter of a million young customers who will grow with us for an IPO,” Wiens said. “We’re growing our customer base faster than our competitors and can soon offer more complex products.”
Check out Getsafe’s Series B pitch deck below: