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. This brings the total funding to date to $125m.
The Series D financing round is led by Goldman Sachs Asset Management, a leading global growth equity investor in B2B SaaS businesses with particular strength in insurtech.
Existing investors, led by HPE Growth and Cinco Capital, participated in the round in substantial size as well.
Xempus intends to use the proceeds to:
– 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.
In Germany, Xempus is the leader in its field with more than 100,000 new policies sold via its platform per year, connecting 18,000 insurance agents, 60,000 corporates and the leading 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.
The Covid-19 pandemic has further accelerated the demand for digital insurance distribution solutions. Since March 2020, Xempus has:
– 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,” says Christian Resch, Managing Director in the Growth Equity business within Goldman Sachs Asset Management. “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”, says Alexander Lippert, Executive Director in the Growth Equity business within Goldman Sachs Asset Management.
“The management team and shareholders are excited that Goldman Sachs is joining us on our journey”, adds Tobias Wann, CEO of Xempus. “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.”
Arma Partners acted as financial advisor to Xempus.
Taylor Wessing acted as legal counsel to Xempus.
About Xempus
Xempus is a leading European pension & life insurance distribution platform. Its software-as-a-service offering allows life insurers, insurance agents, corporates, and employees to buy and manage pension & life insurance online. 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. More than 60,000 corporates, more than 18,000 insurance agents, more than 40 sales organizations and 30 life insurers are on the Xempus platform.
Xempus employs more than 170 people. Offices are in Munich (headquarters), Berlin and Saarbruecken.
For more information, please visit: https://www.xempus.com/en
About Goldman Sachs Asset Management Growth Equity
Bringing together traditional and alternative investments, Goldman Sachs Asset Management provides clients around the world with a dedicated partnership and focus on long-term performance. As the primary investing area within Goldman Sachs (NYSE: GS), we deliver investment and advisory services for the world’s leading institutions, financial advisors and individuals, drawing from our deeply connected global network and tailored expert insights, across every region and market – overseeing more than $2 trillion in assets under supervision worldwide as of December 31, 2021. Driven by a passion for our clients’ performance, we seek to build long-term relationships based on conviction, sustainable outcomes, and shared success over time. Goldman Sachs Asset Management invests in the full spectrum of alternatives, including private equity, growth equity, private credit, real estate and infrastructure. Since 2003 the Growth Equity business within Goldman Sachs Asset Management comprising more than 75 individuals has invested over $13 billion in companies led by visionary founders and CEOs. We focus exclusively on investments in growth stage and technology-driven companies spanning multiple industries, including enterprise technology, financial technology, consumer and healthcare.
Tobias Wann, CEO at Xempus & Malte Dummel, COO & CFO at Xempus
