Monday, March 4, 2024
HomeFunding London-based mobility insurtech Startup Laka Secures €7.6 million in Funding

[Funding alert] London-based mobility insurtech Startup Laka Secures €7.6 million in Funding

Laka, a mobility insurtech firm based in London, secured €7.6 million. Leading impact investor Shift4Good, along with current investors Autotech Ventures, Porsche Ventures, Ponooc, ABN AMRO Ventures, Creandum, 1818 Ventures, and Elkstone Partners, led the equity + debt round of €7.6 million. Former angel investors include Eric Min, co-founder and CEO of Zwift.

The additional funding will be utilised to reinforce Laka’s initiatives to encourage more consumers to switch to more environmentally friendly forms of transportation.

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Tobias Taupitz, CEO and co-founder of Laka, commented: “We’re excited to welcome onboard the Cylantro team to Laka. Thomas and his team have built up a fantastic offering in France, and we can’t wait to ramp up our presence across the country. E-bikes are expected to outgrow car sales by 2025 in Europe and we see huge potential in France, where the sales of bikes and e-bikes are growing at double-digits. We are also excited to welcome Shift4Good as an investor, and we look forward to working with them to expand our commitments to decarbonising mobility, by making it easier for consumers to insure and protect their bikes or e-bikes.”

The primary service given by Laka is collective-driven insurance, with its award-winning bike, e-bike, and e-cargo bike insurance acting as the company’s flagship product. Other services provided by Laka include personal liability, health & recovery, and solutions for business partners. To make insurance fair, Laka employs a collective-driven insurance approach.

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Matthieu de Chanville, Co-founder and Managing Partner at Shift4Good, said: “It is a great honour to assist Laka in accelerating within the highly promising market of smart mobility. Laka returns insurance to its pure, mutual heritage. Laka’s members and their shared interests incentivise positive behaviour which in turn benefits the entire community. We have full confidence in the team, their tech stack, and the momentum of Laka. We are committed to providing substantial support in both Europe today and Asia tomorrow to further their mission of decarbonizing road mobility. Creating global leaders through innovative technology isn’t just our mission; it’s a daily passion, as exceptional entrepreneurs are pivotal in driving a sustainable economy.”

Laka offers additional services to its customers in addition to insurance, demonstrating its “verticalization” approach by accounting for a growing percentage of its revenue. Services are focused on providing value to customers and align with strict ESG targets.

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Examples include obtaining stolen bikes and salvaging damaged bike parts, both of which attempt to reduce the need for replacements and thus, the carbon footprint. Laka plans to broaden its offerings to better serve e-bike users, avid cyclists, and businesses.

Thomas Arnou, CEO and founder of Cylantro, added: “Cylantro was in the unique position of having a lot of acquisition interest and, therefore, able to get a clear vision of the competitor landscape. We chose to join forces with Laka because of their aligned core principles – customer first and best-in-class claims handling. We’re ready to build the European leader together.”

About Laka

Since its founding in 2017, Laka has addressed the problems that customers generally have with traditional insurance, including lengthy contracts, a tonne of fine print, and subpar customer service. While insurers profit when a claim is denied, Laka only receives a success fee when a claim is settled, aligning its interests with those of its clients.

Read also – Hungary-based Startup Flawless Secures $2.2 Mn in Seed Funding

They aim to alter the insurance industry’s regulations such that people support it rather than oppose it. Because of this, they are building a community that gets stronger as it expands, protecting one another while they struggle against the flawed and antiquated in the quest for something better.

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