Xempus is awarded a $70m growth investment by Goldman Sachs

Xempus AG, a leading European SaaS platform to sell and manage pension & life insurance policies, has raised $70m in primary equity funding on its mission to digitize pensions for insurers, agents, corporates, and employees. The total amount raised to date is $125m.

The Series D financing round will be led by Goldman Sachs asset management is a global equity investor in growth in B2B SaaS companies with a particular focus on insurtech. In addition, the round saw substantial participation from existing investors led by HPE Growth, Cinco Capital, and others.

Xempus plans to use the proceeds:

– Broaden its market leading policy sale and management offering in Germany;
– Add new product verticals to the platform, such as corporate health insurance;
– Roll out the Xempus platform in additional European countries.

Xempus, the German leader in this field, sells more than 100,000 policies per year via its platform. It connects 18,000 insurance agents and 60,000 corporates with the top life insurers. They benefit from seamless information flows, user-friendly customer journeys, as well as connectivity to all relevant stakeholders on a single software-as-a-service platform.

Digital insurance distribution solutions have been hailed as a more attractive option due to the Covid-19 pandemic. Xempus is now:

– Signed more than 15 leading life insurers as new platform customers;
– Helped generate approx. €7bn in secured future revenue for insurers;
– Added more than 7,000 new insurance agents;
– Helped agents earn more than €200m in commissions;
– Continued its trend of 100%+ average annual subscription revenue growth over the last 4yrs;
– More than doubled its annual recurring revenue in 2021.

“We see a tremendous opportunity to further digitize the pension & life insurance market,” Christian Resch, the Managing Director for Goldman Sachs Asset Management’s Growth Equity Business, said: “The global retirement funding gap is estimated to reach $400 trillion by 2050. Platforms such as Xempus will play a critical role in reducing this gap by increasing consumer understanding, choice and transparency.”

“We have been following Xempus for some time and are delighted to partner with Tobias, Malte and the entire Xempus team to lead the Series D. We have been impressed by the company’s strong growth momentum and look forward to helping Xempus expand its offering even further”, Alexander Lippert is the Executive Director of Goldman Sachs Asset Management’s Growth Equity business.

“The management team and shareholders are excited that Goldman Sachs is joining us on our journey”, Tobias Wann, CEO at Xempus, adds “This funding allows us to further accelerate our pace as we innovate and tech-enable the insurance market in Europe, delivering better value to insurers, agents, corporates and employees.”

“We have known the Goldman Sachs team for many years,” says Malte Dummel, Xempus CFO & COO. “Goldman Sachs and Xempus share the same unwavering focus on client service and long-term value creation. We are thrilled to partner with the team as we continue to build a leader in digital insurance distribution.”

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