French InsurTech startup Luko has closed a €50m Series B funding round led by EQT Ventures to scale its insurance solutions backed by social responsibility efforts.
Existing investors Accel, Founders Fund, Speedinvest, and Orange Ventures also participated in the round.
A smattering of angels with insurance and technology backgrounds, including Hippo Insurance co-founder and CEO Assaf Wand, also backed Luko’s Series B raise.
Luko will use the money to keep developing its proprietary technology, products and to source new talent.
Since launching in 2018, the founders have assembled a team of 85 people with diverse skills and experiences from leading organisations such as Airbnb, Facebook, Admiral, Uber, Doctolib, Axa and Withings.
Co-founders Raphaël Vullierme and Benoit Bourdel, who now serves as the company’s CEO and CTO respectively, created Luko with the ambition to have a positive impact on society.
Since its inception, 70% of Luko’s premiums are pooled with other customers’ and this pool is used to pay compensation; 30% go towards Luko’s management costs. At the end of the year, any premiums left in the pool that haven’t been used to refund claims are donated to charities chosen by policyholders.
“Luko’s ambition has always gone beyond insurance,” said Vullierme. “Our long-term vision is to help build and democratize the sustainable homes of tomorrow, enabling everyone to live at home with peace-of-mind. Our transparent and communal model has already helped more than 100,000 French people and we are very proud today to work with EQT Ventures to accelerate this vision in Europe”.
Rania Belkahia, deal partner at EQT Ventures, who joins Luko’s board, added: “We were incredibly impressed by Luko’s stellar team, united in their singular focus on changing people’s perception of insurance from something arduous to truly positive, thanks to their unique technology.
“As EQT Ventures’ first investment since opening our French office, Luko is a flagship company in which we are proud to play a part. Their mission to transform the future of homecare and protection through transformative technology, powered by a social conscience, really caught our eye and we are looking forward to their continued growth into a European powerhouse.”
