- Laka is a leading insurtech company disrupting the traditional
insurance market for cyclists
- Laka has grown 215% in 2020, as the industry flourishes with
bike sales soaring and £907m being invested in cycling-related
infrastructure across Europe
- Laka exceeded its £1m fundraise target in just 21 hours of the
campaign going live
- Further investment is now being accepted in overfunding mode to
welcome more people into the Laka collective
LONDON, Nov. 9, 2020 /PRNewswire/ -- Laka, a
collective-based insurer of cyclists, has today publicly launched
its funding round with Seedrs and already smashed the £1million
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said, "The outdated traditional insurance model is based on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."
To view Laka's crowdfunding page, pedal to Seedrs
About Laka
Laka has challenged outdated traditional insurance to provide
customers with a fairer, collective-driven approach to cycle
insurance. Laka customers pay no upfront premiums and are instead
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. Laka 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.