Laka reveals Europe expansion plans after $4.7m funding round

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The insurtech plans to set up a post-Brexit hub

Zurich-backed insurtech – Laka has revealed its plans after receiving $4.7m in equity funding.

The funding round closed at the end of last month, it was led by LocalGlobe and Creandum.

It will be used to support the London-based insurtech’s expansion across Europe, grow its staff, develop its product set and set up a post-Brexit hub.

Tobi Taupitz, co-founder and chief executive of Laka told Insurance Times it is branching out to the Netherlands in H1 this year.

This is so Laka can set up a post-Brexit hub there with the popularity of bicycle usage in the Netherlands. But it hopes to expand beyond the Netherlands in the near future.

It will also be launching a recovery and health product in Q1 this year, to decrease cyclist’s recovery time post-accident.

It follows Amanda Blanc joining Laka’s board.

Post-Brexit hub

The new Netherlands hub will act as a springboard for its new products across Europe.

Currently the insurtech has a workforce of 22 people which it hopes to grow.

Taupitz, said: “Cyclists should be able to completely trust their insurance providers - through our community-based approach, we are bringing our customers, many of whom have previously been ill-served by legacy players, a product that ensures fair treatment, trustability and transparency.

”We’ve seen a fantastic response from the British cycling community, who have become our greatest advocates, and we’re looking forward to launching Laka across Europe and beyond.

“The applicability of this model is really exciting. Ideally suited to high frequency and low severity forms of insurance, our ultimate ambition is to roll out Laka insurance products for a range of different purposes.

”From covering the equipment of the 138m outdoor sports enthusiasts across Europe, to personal accident cover and beyond, our mission to create a community driven, transparent approach to insurance has only just begun.”

Laka originally launched in January 2018 initially focusing on the cycling market.