Main buyers in Wefox, the troubled European insurance coverage firm, are engineering a €150m (£125m) refinancing to avert the necessity to promote one in every of its most dear remaining belongings.
The corporate can also be understood to be planning to refinance €70m revolving credit score facility, in accordance with insiders.
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Buyers are understood to have been given till Friday to register their curiosity within the share sale.
The money name is designed to be a substitute for a sale of TAF, one in every of its prized subsidiaries.
Wefox can also be backed by outstanding buyers together with the Abu Dhabi state fund Mubadala.
The corporate has twice this yr warned that it confronted operating out of cash inside months.
Sources stated, nonetheless, that securing a brand new capital injection would put Wefox on a sustainable medium-term footing.
Wefox has been ravaged by losses in quite a lot of its key markets together with Italy, though its operations within the Netherlands stay worthwhile.
The corporate was valued at $4.5bn (£3.6bn) in a funding spherical lower than two years in the past and counts Barclays and JP Morgan amongst its lenders.
It’s now valued at far lower than the $1bn wanted to protect its standing as a tech unicorn.
Earlier this yr, the corporate purchased itself time by elevating roughly €20m from current buyers, whereas it has additionally bought Assona, a subsidiary which gives insurance coverage cowl for electrical bikes.
Based in 2015, Wefox sells insurance coverage merchandise via in-house and exterior insurance coverage brokers, and has ceaselessly boasted of its ambition of revolutionising the insurance coverage business via the usage of expertise.
It has greater than two million prospects throughout its enterprise.
In July 2022, Wefox raised a $400m Sequence D funding spherical valuing it at $4.5bn, making it one of many largest fintechs in Europe.
That adopted a $650m spherical in Could 2021 valuing it at $3bn, reflecting the frothy urge for food of buyers to again scale-ups considered having the potential to develop into world rivals of real scale.
It then secured an additional $55m in fairness financing and the identical quantity in debt funding from Barclays and JP Morgan a yr in the past.
Wefox couldn’t be reached for remark.
