Laka a collective-based insurer of cyclists, has today publicly launched its funding round with Seedrs and already smashed the £1m target as people recognise the pandemic’s effect on altering people’s mobility plans.
The insurtech venture has seen huge revenue growth (215%) in 2020, fuelled by a corona-virus cycling revolution that has seen bike sales increase 50% year-on-year. The personal mobility market is expected to hit £100B by 2025, and Laka is looking to capitalise on growing consumer appetites to hop on their bikes for environmental, health and transport reasons. New funds will be used to accelerate its international expansion and evolve its innovative, collaborative approach to insurance to include new products for its 21,000-strong community of cyclists.
The insurtech is reimagining the approach to cyclist and bike protection, putting its community of customers first and making sure they get a fairer deal – leaving them with a better experience of insurance. YouGov research by Laka found that UK consumers are overwhelmingly unhappy with the level of service they receive from insurers, with only a quarter (23%) of respondents expecting to be treated fairly by their insurer. Laka’s collective-based approach to insurance is rebuilding the trust between customer and insurer and provides them with everything a cyclist needs to get on the move, wherever they are and whatever their purpose.
Since being formed in 2018, Laka has enjoyed impressive growth, providing insurance cover for over 10,000 bikes to a value of over £26M. Now, Laka is set to grow even further as they invite investors to join them on their mission to inspire more people to enjoy cycling. To date, Laka has raised £4.9m from world-class investors including LocalGlobe and Creandum, alongside angel investment from Rapha chairman Nick Evans, and the former CEO of Fitness First, Oren Peleg.
Of the raise with Seedrs, Tobias Taupitz, Laka’s Founder and CEO said, “The outdated traditional insurance model is based on insurers taking your money and profiting from not paying out claims. Not doing the very thing you pay them for is what makes them more money. It’s insane. Insurance is the best business model in the world – just not for customers. That’s why we’ve flipped insurance on its head and created a better, fairer way of doing insurance by sharing risk in a true collective.
“Our members share the cost of all claims and we only earn our share when settling claims for the collective. Now, following years of growth, we want to grow faster and bring the collective along with us. Laka has loads of potential – that’s why we’re crowdfunding.
“Covid-19 has accelerated a shift in behaviour away from using public transport. The time of the bike has come and we are ready for it. What’s more we have assembled a brilliant team of backers and cycle industry experts, who, together with our fast-growing collective, will ensure we maximise this amazing opportunity.”