Investment within the insurtech and fintech sectors continues, despite the Corona outbreak. One area where transformation is overdue is the Life and Pensions sector, where a `buy it, store it and forget it’ approach has gradually become a bit of a non-starter for many consumers. But change is coming. Xpension (“xbAV AG”), the German market leader in the digitalization of corporate pension & life insurance raises €25m in its Series C financing round. This takes the total funding to date to more than €50m.
The financing round is led by HPE Growth, one of the leading European growth investors. Tim van Delden, Co-Founder and Partner at HPE Growth, will join Xpension’s Supervisory Board.
Existing investors Cinco Capital, led by Lars Hinrichs (founder of XING and chairman of Xpension), and Armada Investment, led by Daniel S. Aegerter (founder of Tradex), participated in the round in significant size.
The growth financing will be used to:
Scale up Xpension’s market-leading corporate pension & life insurance SaaS platform in Germany;
Expand the offering into private pension & life insurance and corporate health insurance;
Prepare the rollout of the Xpension platform in selected European countries.
Currently, more than 40 life insurers and sales organizations, 11,000 insurance agents and 3,000 SMEs use the Xpension platform. They benefit from user-friendly information and customer journeys, transparent and efficient processes, and a single SaaS platform to connect all stakeholders. Xpension continues to build on its strong growth momentum with a 4x increase in recurring revenues in 2019.
“The move online of the €2.5trn global pension & life insurance industry is a huge topic,” says Tim van Delden, Partner at HPE Growth. “A SaaS platform like Xpension – which connects life insurers, agents and their corporate and private customers to buy and manage policies – will be a game changer. The platform’s rapid growth highlights both the strength of the underlying demand as well as the team’s impressive execution to date, and we are excited to further support Xpension with our resources and expertise.”
“Our vision is to enable every person to get the right pension & life insurance protection for themselves and their family,“ adds Martin Bockelmann, CEO & Founder. “After several years of intensive R&D and broad-based user acquisition, this partnership with HPE Growth allows us to unleash the full potential of our platform in Germany and abroad.”
“We are delighted to welcome HPE Growth – proven scale-up experts – to our investor network,“ says Malte Dummel, CFO. “This growth financing further advances our ambition to drive the digital transformation in the life insurance industry.”
HPE Growth, established in 2010, is a leading European investment firm focused on expansion/growth capital investments in technology companies throughout Northwestern Europe. HPE invests in high-growth software, internet-enabled, mobile, fintech and healthtech businesses that have the option to further leverage their proven technology to become a global category leader. By bringing in additional equity and active support, HPE acts as a catalyst for expansion and enables portfolio companies such as WeTransfer, Monedo, AEVI, Uberall, NGData, eGym, Zava and PPRO, to execute on their vision of securing market leadership. For more information about HPE Growth, please visit: www.hpegrowth.com.