London-based insurtech Laka has raised €7.6 mn in new funding led by French mobility fund Shift4Good. Other investors in the funding include Autotech Ventures, Porsche Ventures, Creandum, Ponooc, and Elkstone Partners. The round is a mix of debt and equity.
Founded in 2017, Laka specializes in offering innovative insurance solutions primarily for e-bike riders, enthusiast cyclists, and companies.
The company’s approach to insurance is unique and customer-centric, focusing on collective-driven insurance. This model involves sharing each month’s claims among a collective of cyclists, with the monthly bill varying up to a guaranteed cap. This approach means that cyclists only pay for what’s needed, rather than an estimated amount.
Laka provides insurance cover to e-bike owners in several European markets, both directly and through retailers like Decathlon.
As well as the funding, the company has acquired Cylantro, a France-based e-bike insurance broker.
Laka has built a bespoke insurance product that it says is a collective-driven insurance model where cover is based on the cost of claims. Cyclists pay no upfront premium and rather each month’s claims are shared amongst a collective of cyclists.
According to the company, under this model, cyclists only pay for what they need.
Chief executive Tobias Taupitz said that Laka is expanding on the B2B2C model of selling insurance by partnering with retailers to reach more cyclists.
Laka’s insurance offerings are comprehensive, including their flagship products of bike, e-bike, and e-cargo bike insurance.
They also provide additional products such as personal liability, health & recovery, and solutions tailored for commercial partners. What sets Laka apart is their emphasis on aligning their interests with their customers, as they earn a success fee only when a claim is settled. This approach has led to Laka winning the title of Best Cycle Insurance Provider for five consecutive years.
In terms of expansion and growth, Laka has been proactive. The company recently acquired Cylantro, a French e-bike insurance broker, which is part of their strategy to expand their presence in the European market, particularly in France.
The acquisition complements Laka’s existing partnership with Decathlon in France. As of now, Laka operates across five countries – the UK, France, Germany, Belgium, and the Netherlands.
Financially, Laka has secured substantial funding to advance its mission. They have raised over €10.6 mn, which will be used to amplify their efforts in enabling more customers to transition to environmentally friendly modes of transport.
This funding round was led by various investors, including Autotech Ventures, Ponooc, ABN AMRO Ventures, and others. Notably, Laka has also received angel investment from notable figures in the cycling industry.
Laka’s innovative approach and rapid expansion underscore the growing importance of e-mobility and green transportation solutions in Europe.
Their success and unique business model position them as a potentially significant player in the insurtech space, especially in the context of the increasing adoption of e-bikes and other e-mobility vehicles.
by Peter Sonner