Porsche invests £1.2 million in cycling insurer Laka

Insurer has "a unique, highly adaptable and digital business model"

Porsche invests £1.2 million in cycling insurer Laka

Technology

By Lyle Adriano

The venture capital arm of German automobile company Porsche AG has invested $1.5 million (about £1.2 million) into Laka – a digital mutual insurer focused on providing cover for bicycles and related equipment.

Porsche Ventures’ investment brings Laka’s latest Series A round, which was led by Autotech Ventures, with the participation of Ponooc and ABN AMRO, to a total of $13.5 million (about £10.9 million).

According to a statement on Laka’s website, it is “uniquely placed and first-to-market with an insurance model that has customer interest built-in to the core,” as there is no major European player for cycling and e-mobility insurance. The insurer also said that it has plans to expand its product offering to e-scooters, e-mopeds, and eventually even to e-cars. Laka also announced that it is expanding to cover commercial fleets across Europe, noting that companies shifting to greener transport and e-mobility are underserved by traditional insurers.

“The increasing digitization and variety of sustainable mobility offers leads to the need for an innovative and customer-centric offer in the field of digital insurance,” said Porsche Ventures head of Europe & Israel Patrick Huke. “With the investment in Laka, we are pleased to support a strong team that is addressing the global insurance market with a unique, highly adaptable and digital business model, which focuses above all on the customer experience.”

Laka stated that it would be “exploring opportunities” with the Porsche Ventures portfolio to build up the framework to support the e-mobility segment. To that end, the insurer will initially partner with German cycling brand Cyklaer to offer new and existing customers built-in digital insurance products. Cyklaer will also join Laka’s growing list of partner companies, which includes the likes of Decathlon, Raleigh, Le Col, Santander Consumer Finance, and Monzo.

“2021 truly depicted an inflection point for Laka as we moved from a pure direct-to-consumer play towards retail and commercial partnerships,” commented Laka co-founder and CEO Tobias Taupitz.

Taupitz also noted that e-mobility is redefining transport all around the world, and Laka has set out to build the backbone of the segment – particularly as the idea of “net zero emissions” has become front of mind for consumers, businesses, and governments.

“To support this shift towards a greener future, we have a bold vision to become the world’s largest e-mobility insurance partner,” the chief executive said.

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