One of Europe’s biggest insurtech companies is closing in on a sizeable capital injection that is expected to see its valuation soar to around $2bn.

Sky News has learnt that WeFox, which is based in Berlin, is in advanced talks to raise roughly $250m from a syndicate of investors.

Sources said on Thursday that Target Global, a German-headquartered fund which has backed start-ups such as Delivery Hero and the ride-hailing app Lyft, was expected to lead the round with a $100m investment.

WeFox’s other investors include Omers Ventures, an arm of the giant Canadian pension fund, and Chrysalis Investments, which is part of the fund management group Jupiter.

Insiders said an announcement about WeFox’s latest fundraising was likely in the next month.

They added that it was likely to value the insurtech at close to $2bn.

It is expected to be WeFox’s last significant capital-raise before an initial public offering.

Last week, the company said its core insurance business had hit profitability for the first time.

Set up in 2015, WeFox has 500 employees and a customer base across Europe, including the UK, of more than 500,000 people.

A WeFox spokesman said its funding round had yet to be concluded, adding that it would be “inappropriate to comment on confidential discussions”.

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