The InsurTech startup Laka, based in London, collected $ 10.4 million in series B financing because it looks at the profitability of profitability at the end of next year.
Laka offers a “collective” insurance for bicycles and e-scooters and bundles claims in a municipality of drivers. Instead of fixed conditions, customers pay a variable monthly fee based on the total number of claims in the entire user base. The fee is limited on the basis of the value of your equipment with a maximum amount. Less claims mean lower costs for everyone.
Laka offers insurance protection coverage both directly and through retailers such as Decathlon, Brompton Bikes, Gazelle and Ribble Bikes.
Tobias Taupitz, the CEO and co -founder of the company, said the company aims to make the traditional insurance model “upside down”.
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“Traditional insurance companies are based on fixed premiums, which often means that they are overpaid because of soul peace,” Taupitz told TNW. “We only earn with Laka if claims are paid. We win when our community wins.”
According to Taupitz, the insurance of e-bikes is expensive and complicated. He believes that one of the main problems is that traditional insurers are not bicycle specialists. “They often bundle bicycles into the same category as devices or watches and do not recognize that a bike is an integral part of everyday life for many,” he said.
Nevertheless, a collective insurance is not without challenges. The model depends on the frequency and high trust of the drivers with low damage cases – variables that could introduce volatility when increasing the accident rates.
Nevertheless, Laka's model seems to keep online with largely positive reviews. It currently insures 80,000 users in Great Britain, the Netherlands, France, Germany, Belgium, Austria, Denmark, Portugal and Luxembourg. The company's growth is partly based on a trio of acquisitions.
In October 2023, Laka recorded the French e-bike broker broker cylantro, won a local customer base and brought the founder Thomas Arnou on board to manage his French operations. A year later, it acquired the rights of insurance renewal to the UK-based coverage bike portfolio in Great Britain. Laka recently took over Luko's e-scooter insurance portfolio in March, with over 20,000 French customers added to his books and marked its entry into the e-scooter cover.
Laka is recently beyond the insurance to expand recovery services for stolen or damaged bicycles and e-scooters. An initiative for recovery and recycling of old bike parts has also started to be more sustainable.
Laka would like to redeem a micromobility industry that has to be cooled since the Covid 19-Lockdown boom.
The global market for micromobility will double from around $ 160 billion by 2030 in the amount of USD 340 billion. McKinsey. Europe is ready to lead the fee, and its market is expected to increase by around $ 60 billion by the end of the decade in 2022 to $ 140 billion.
The round of Series B of Laka was headed together by Shift4Good and US company MS & ad Ventures. Existing investors, including PonoOc, Achmea Innovation Fund, Autotech Ventures, Motif Partners, Creandum, Localglobe, 1818 Ventures and Republic (formerly Seedrs), also made it in.
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