InsurTech Laka pedals ahead with $8m funding and strategic acquisition

InsurTech Laka pedals ahead with $8m funding and strategic acquisition

Laka, an InsurTech aimed at bicycles, reportedly announced a successful funding round amounting to $8m. Leading the investment was the French mobility fund, Shift4Good.

Additional supporters of this round encompass Autotech Ventures, Porsche Ventures, Creandum, Ponooc, and Elkstone Partners, according to a report from Forbes. It’s worth noting that the funding round was composed of both debt and equity.

Laka distinguishes itself with a unique “collective-driven insurance model”. Instead of traditional upfront premiums, this approach calculates coverage costs based on the actual claims filed each month. These costs are then evenly spread amongst a collective of e-bike riders. Essentially, cyclists only pay for the coverage they truly require.

Adding to its expansion trajectory, Laka also acquired Cylantro, a reputable e-bike insurance broker situated in France.

Laka’s bespoke insurance model has found success not only with individual customers but also through B2B2C partnerships, collaborating with major retailers to access a broader cyclist audience. Their established collaboration with Decathlon, a leading global sports retailer, exemplifies their outreach strategy.

Laka chief executive Tobias Taupitz commented on their growth strategy, “Over time we learned that there’s additional appetite on the B2B2C side, working with big partners like Decathlon, one of the world’s leading sports retailers, and we have been live with them for about two years now in various countries.”

He further elaborated on the broader market potential, “I think there’s a big wide space in the European market for what we call a green mobility powerhouse. You have lots of individual local brokers that service one individual country, but nobody has solved the pain point for these bigger partners who sell bikes across territories, across borders with lots of challenges and regulatory perspectives and the like.”

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