Two of the leading investors in Wefox, the troubled insurance technology company, are proposing to lead a €25m (£21.1m) capital injection to thwart a rival proposal from insurer Ardonagh to buy large chunks of the company.
Sky News has learnt that London-listed Chrysalis Investments and Target Global submitted a term sheet to Wefox in recent days that they argue would preserve value for its broader shareholder base.
The €25m investment, which would also include funding from a number of other Wefox shareholders, would act as a bridge until the group is able to sell Assona, a subsidiary which provides insurance for electric bikes, according to insiders.
The proposal comes amid a bitter fight for the future of what was once one of Europe’s hottest insurtech start-ups.
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Wefox has been ravaged by losses in a number of its key markets including Italy, although its operations in the Netherlands remain profitable.
The proposal led by Chrysalis and Target is designed to steer the company towards overall profitability, which they are understood to believe is possible next year.
Mubadala, the Abu Dhabi state fund, favours selling a major part of Wefox to Ardonagh in a €550m (£433m) deal that would preserve its returns but wipe out other shareholders and the company’s founders.
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Sky News revealed last month that Mark Hartigan, the controversial British boss of Wefox, had warned investors that it could face collapse within months amid a slew of…
