Green mobility insurer Laka is targeting profitability after raising 拢7.75m in Series B funding.
The London firm has evolved from a cycle insurer into a multi-vertical green mobility platform covering e-bikes, e-scooters and sustainable transport across nine EU markets and the UK.
Laka鈥檚 main offering is collective-driven insurance – with its flagship product being bike, e-bike and e-cargo bike insurance – alongside other products such as personal liability, health & recovery and solutions for commercial partners.
Laka uses a collective-driven insurance model to make insurance fair. Each month鈥檚 claims are shared amongst Laka鈥檚 collective of cyclists, so the monthly bill varies up to a guaranteed cap. It says that this means cyclists only pay for what’s needed, not what’s expected.
Laka says it has fixed what customers typically dislike about conventional insurance: long contracts, pages of fine print, and poor customer service. Whilst insurers benefit when a claim is rejected, Laka earns a success fee only when a claim is settled, and thus aligns interest with its customers.聽
The Series B funding round is led by Shift4Good and MS&AD Ventures, with support from existing backers LocalGlobe and Creandum. Porsche Ventures is also a backer.
The firm may seek to raise an additional extension round in 2025, focused on strategic investors, and will also soon complete a significant debt financing agreement in the coming months, which will fund its acquisition pipeline.
Over the last two years, it has snapped up Luko鈥檚 e-scooter insurance portfolio from Allianz Direct, adding 19,000 customers and deepening its focus on micromobility; secured the renewal rights to CoverCloud’s bike insurance portfolio; and swooped for French e-bike insurance broker Cylantro.
Laka鈥檚 commercial partners include Decathlon, Brompton, Gazelle, Riese & M眉ller, Tenways and Ribble.
鈥淩eaching this milestone marks a pivotal moment in Laka鈥檚 journey – it鈥檚 a testament to the trust we鈥檝e built with riders, retailers, and corporate partners across Europe,鈥� said Tobias Taupitz, CEO and co鈥慺ounder.聽
鈥淭his new financing will enable us to deepen that trust, expand our category鈥慸efining role in green mobility insurance, and build towards profitability, while pursuing further acquisitions that consolidate this fragmented market.鈥�