Ponooc invests in Laka; a unique e-mobility insurtech venture

Laka, a London-based insurtech startup that started by offering a unique insurance model to cyclists in 2018, has raised a $12 million Series A round.

Funding from leading e-mobility and cycling industry investors was secured through Laka’s strong growth in its successful retail partnership and commercial fleet propositions. The round was led by US mobility investor Autotech Ventures with participation from sustainable mobility and energy fund Ponooc, alongside ABN AMRO Ventures of leading European bank ABN AMRO. Existing investors including Creandum, LocalGlobe, 1818 Ventures and Elkstone Partners followed on. 

With the e-mobility sector set to grow further as consumers and commercial businesses turn to cleaner forms of transport, Laka aims to capitalise on this  year-on-year sector growth; E-cargo bikes (73%), e-bikes (43%), and with 19% of commuters being more likely to cycle to work after the lockdowns, the retail mobility market also has a strong growth outlook.

Turning the traditional insurance model

Offering fair insurance is the vision behind the startup Laka, which was founded by three ambitious entrepreneurs. Laka turns the existing insurance model on its head: it only charges customers based on the cost of actual claims that have been taken out that month, with a fee that is capped. 

“Our reason to support Laka is obvious.” comments Rui Li, Investment Manager at Ponooc. “As an investor specialised in sustainable mobility we see the large and fast growing need for a customer centric, transparent and digital mobility insurance proposition. We are convinced that insurtech will play an important role in accelerating the adoption of sustainable mobility. In this space Laka offers an exceptional proposition for both the B2B and B2C market. Ponooc welcomes Laka and its highly talented team to its family, and is thrilled to be part of its growth journey.”

Launching Laka across Europe and beyond

Already insuring many of the UK’s leading last mile delivery companies, such as Zapp, Jiffy and Urb-it, Laka will now expand to cover commercial fleets Europe-wide, where companies who are shifting their fleet to greener transport and e-mobility are underserved by traditional insurers. Laka will use the new capital to rapidly expand across Europe, launching in Belgium, France and Germany in the first half of 2022 to service retail partners on the back of recently won partnerships including global giant Randstad, iconic cycling brands Raleigh and Le Col, as well as a leading international consumer bank and the world’s largest sports retailer, Decathlon. Laka will expand its product offering to e-scooters, e-mopeds and, eventually, e-cars to better serve Europe-wide partnerships including manufacturers, retailers and leasing businesses.

“With Laka’s new investors bringing major European distribution opportunities”, Tobias Taupitz, CEO and co-founder of Laka comments,“2021 truly depicted an inflection point for Laka as we moved from a pure direct-to-consumer play towards retail and commercial partnerships. E-mobility is redefining transport globally, and Laka has set out to build the backbone to support the e-mobility segment at a time when “Net Zero Emissions” has rightly become front of mind for consumers, businesses and government policy. To support this shift towards a greener future, we have a bold vision to become the world’s largest e-mobility insurance partner.”

With the investment in Laka, Ponooc supports Laka’s mission to inspire more people to enjoy cycling and keep cyclists moving.