London-based insurtech startup Laka has raised $10.4 million in a recent Series B funding round. The company specializes in “collective insurance” for cyclists, allowing members to pool their resources for coverage and potentially reduce individual costs.
This funding round aims to help Laka navigate its path toward profitability by the end of next year. The company has expressed optimism about achieving this goal while continuing to enhance its unique insurance model.
The latest round was backed by several notable investors who recognize the potential of Laka’s approach to bike coverage. Their support highlights the growing interest in innovative insurance solutions, especially in the cycling sector.
Laka’s model stands out because it operates on a collective basis. Instead of traditional premium payments, members contribute based on claims made in a given period, which could translate to lower costs for its users. This model aims not only to simplify bike insurance but also to make it more affordable, reflecting the needs of cyclists today.
The funding and focus on profitability could lead to enhanced offerings for cyclists. If successful, Laka’s approach may reshape how bike insurance is perceived and utilized, fostering a stronger community among cyclists.
Overall, Laka’s recent funding points to a positive trend in insurtech and the importance of community-driven insurance solutions in the evolving market.
Original Source: https://thenextweb.com/news/laka-collective-insurance-ebike-funding