London-based cyclist InsurTech startup Laka has secured more than 10.6 million pounds ($12 million) to advance its insurance model, EU-Startups reported Wednesday (Jan. 26).
The round was led by California-based early-stage venture capital firm Autotech Ventures, Amsterdam sustainable mobility investor Ponooc and European bank ABN AMRO Ventures. Existing investors Creandum, 1818 Ventures, LocalGlobe, and Elkstone Partners also participated.
The dramatic growth in sales of bicycles and scooters has been spurred by the trend toward environmentally friendly transportation. COVID-19 has also played a part in the increased for eMobility.
CEO and Co-founder Tobias Taupitz said 2021 was key for Laka as it moved from direct-to-consumer sales to retail and commercial partnerships.
“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,” Taupitz said in a statement. “To support this shift towards a greener future, we have a bold vision to become the world’s largest e-mobility insurance partner.”
Founded in 2018, Laka offers what it calls a unique insurance model. There is no upfront payment. But when there is a claim, the company calculates the cost and splits it fairly between customers. The amount is capped at a “market rate.”
The U.K. has become a popular place for the launch of InsurTech startups.
Read more: InsurTech Zego Plans European Expansion
Last week, Zego, the U.K.-based commercial motor vehicle insurance company, is planning a European expansion, the company announced Wednesday (Jan. 19), according to a UKTechNews report.
The InsurTech company, which offers safe drivers as much as 20% off on premiums, has launched in the Netherlands and is expanding operations in France. The company also operates in Ireland, Spain, Belgium and Italy.