London-based insurtech startup Laka has raised $10.4mn in Series B funding as it eyes profitability at the end of next year.

Laka offers “collective” insurance for bikes and e-scooters, pooling claims across a community of riders. Instead of fixed, upfront premiums, customers pay a variable monthly fee based on the total number of claims across the entire user base. The fee is capped at a maximum amount based on the value of their gear. Fewer claims mean lower costs for everyone.  

Laka provides the insurance cover both directly and through retailers like Decathlon, Brompton Bikes, Gazelle, and Ribble Bikes. 

Tobias Taupitz, the company’s CEO and co-founder, said the business aims to turn the traditional insurance model “on its head.” 

“Traditional insurance is built around fixed premiums, which often means overpaying for peace of mind,” Taupitz told TNW.  “With Laka, we only earn when claims are paid. We win when our community wins.”

According to Taupitz, insuring e-bikes is expensive and complicated. He believes one of the main issues is that traditional insurers aren’t bike specialists. “They often bundle bikes into the same category as gadgets or watches, not recognising that for many, a bike is a vital part of daily life,” he said. 

Still, collective insurance isn’t without its challenges. The model hinges on low claims frequency and high trust among riders — variables that could introduce volatility if accident rates spike. 

Despite that, Laka’s model appears to be holding up so far, with largely positive reviews online. It currently insures 80,000 users across the UK, Netherlands, France, Germany, Belgium, Austria, Denmark, Portugal, and Luxembourg. The company’s growth stems, in part, from a trio of acquisitions. 

In October 2023, Laka snapped up French e-bike broker Cylantro, gaining a local customer base and bringing founder Thomas Arnou onboard to lead its French operations. A year later, it acquired the insurance renewal rights to UK-based CoverCloud’s bike portfolio. Most recently, in March, Laka took over Luko’s e-scooter insurance portfolio, adding over 20,000 French customers to its books and marking its entry into e-scooter cover. 

Laka has recently expanded beyond insurance to include recovery services for stolen or damaged bikes and e-scooters. It has also launched an initiative to salvage and recycle old bike parts in a bid to be more sustainable. 

Laka aims to cash in on a micromobility industry that — despite cooling off since the COVID-19 lockdown boom — continues to show steady growth. 

The global micromobility market is set to double in size from roughly $160bn today to $340bn by 2030, according to McKinsey. Europe is poised to lead the charge, with its market expected to jump from around $60bn in 2022 to $140bn by the end of the decade.  

Laka’s Series B round was co-led by Shift4Good and US firm MS&AD Ventures. Existing investors, including Ponooc, Achmea Innovation Fund, Autotech Ventures, Motive Partners, Creandum, LocalGlobe, 1818 Ventures, and Republic (formerly Seedrs), also chipped in.