▼ Summary
– Laka, a London-based insurtech startup, raised $10.4 million in Series B funding and aims for profitability by the end of next year.
– The company offers collective insurance for bikes and e-scooters, with variable monthly fees based on community claims, capped at a maximum amount.
– Laka operates directly and through retailers like Decathlon and Brompton Bikes, challenging traditional fixed-premium insurance models.
– The startup has expanded via acquisitions, including Cylantro and Luko’s e-scooter portfolio, now covering 80,000 users across multiple European countries.
– Laka is capitalizing on the growing micromobility market, projected to double to $340 billion globally by 2030, with Europe leading the growth.
Laka, the innovative bike insurance provider, has secured $10.4 million in Series B funding as it works toward profitability by next year. The London-based insurtech company is shaking up the industry with its unique collective model, which replaces fixed premiums with variable monthly payments tied to actual claims across its user base.
Unlike traditional insurers, Laka operates on a community-driven approach, where riders share the cost of claims rather than paying predetermined fees. Each month, customers contribute based on the total claims filed, with a cap set according to their bike or e-scooter’s value. This system rewards safer riders, when fewer claims are made, everyone pays less.
The company partners with major retailers like Decathlon, Brompton Bikes, Gazelle, and Ribble Bikes, offering coverage both directly and through these channels. CEO Tobias Taupitz emphasizes that Laka’s model flips conventional insurance on its head. “Traditional insurers profit regardless of claims, but we only succeed when our community does,” he explains.
Taupitz points out that standard policies often treat bikes as minor accessories rather than essential transportation, leading to high costs and inadequate coverage. Laka’s specialized focus on cyclists and e-scooter riders aims to address this gap, providing tailored protection for a growing market.
However, the collective model isn’t without risks. Its success depends on maintaining low claim rates and fostering trust among users, factors that could fluctuate if accidents rise unexpectedly. Despite these challenges, Laka has gained traction, currently serving 80,000 customers across nine European countries, including the UK, Germany, and France.
Expansion has been fueled by strategic acquisitions, such as French broker Cylantro and UK-based CoverCloud’s bike portfolio. Most recently, Laka absorbed Luko’s e-scooter insurance business, adding over 20,000 French users and marking its entry into the e-scooter segment.
Beyond insurance, the company now offers recovery services for stolen or damaged bikes and has introduced a sustainability initiative to repurpose old bike parts. These moves align with the broader growth of micromobility, which, despite slowing post-pandemic, remains on an upward trajectory.
Analysts predict the global micromobility market will surge from $160 billion to $340 billion by 2030, with Europe leading the charge. Laka’s latest funding round, co-led by Shift4Good and MS&AD Ventures, alongside continued support from existing investors, positions the company to capitalize on this expanding sector.
(Source: The Next Web)
