London-based Laka, a e-mobility insurance disruptor has secured additional funding to its Series A investment round. This is an extension to the Series A round of £12M that it secured in January and it takes the total fund raised by this round to $13.5 million.
The financing came from Porsche Ventures (which invested in Group14), the venture capital unit of Porsche AG. It was joined by the existing investors, including Autotech Ventures, Ponooc, ABN AMRO Ventures, Creandum, LocalGlobe, 1818 Ventures (which invested in Playter) and Elkstone Partners.
Disrupts e-mobility insurance
Laka will use the new capital and network opportunities to facilitate its European expansion. In addition, the insurtech company will expand its product offering to e-scooters, e-mopeds and, eventually, e-cars to better serve Europe-wide partnerships including manufacturers, retailers and leasing businesses.
About the investment, Patrick Huke, Head of Porsche Ventures, Europe & Israel said “The increasing digitisation and variety of sustainable mobility offers leads to the need for an innovative and customer-centric offer in the field of digital insurance. With the investment in Laka, we are pleased to support a strong team that is addressing the global insurance market with a unique, highly adaptable and digital business model, which focuses above all on the customer experience.”
Tobias Taupitz, CEO and co-founder of Laka said “2021 truly depicted an inflection point for Laka as we moved from a pure direct-to-consumer play towards retail and commercial partnerships. e-mobility is redefining transport globally, and Laka has set out to build the backbone to support the e-mobility segment at a time when “Net Zero Emissions” has rightly become front of mind for consumers, businesses and government policy. To support this shift towards a greener future, we have a bold vision to become the world’s largest e-mobility insurance partner.”
How does Laka work?
Laka was founded by Ben Allen, Jens Hartwig and Tobias Taupitz in 2017 in London. It transforms insurance for businesses and customers across Europe with unique daily pricing based on the actual cost of claims. With no major European player for cycling and e-mobility insurance, the startup is uniquely placed and first-to-market with an insurance model that has customer interest built in to the core.
Unlike outdated traditional insurance, Laka provides customers and businesses with a fairer, collective-driven approach to insurance. Customers pay no upfront premiums, and are charged based on the cost of claims submitted by the collective the previous month. Fewer claims result in lower charges.
Laka customers work together as a collective and share the cost of claims. It handles all claims, divides the cost fairly and limits each customer’s maximum monthly spend with a cap based on the value of the equipment insured by each individual member. Laka members fully benefit from lower costs but are also protected if there are a high volume of claims in any given month.
Laka eyes to build the backbone to support the e-mobility segment. Initially, partnering with German cycling brand Cyklaer, it intends to offer new and existing customers with built-in digital insurance products. Cyklaer will join Laka’s partners, which include the world’s largest sports retailer, Decathlon, iconic cycling brands Raleigh and Le Col, and Santander Consumer Finance and Monzo. These partnerships enable the brands to provide end-to-end digital experiences by immediately protecting their customers from theft and damage at the point of sale.
Already, Laka has helped insure many of leading last-mile delivery companies in the UK such as Zapp and Urbit. It is also expanding to cover commercial fleets Europe-wide, where companies who are shifting their fleet to greener transport and e-mobility are underserved by traditional insurers.