Laka, a European mobility insurtech providing a range of insurance and circular economy services to e-bike riders, enthusiast cyclists and companies, today announces the acquisition of Cylantro, a French e-bike insurance broker.
Laka also announced its latest funding round to build upon its leadership of the Green Mobility category. The equity + debt round of €7.6 million, was led by leading impact investor Shift4Good alongside existing investors Autotech Ventures, Porsche Ventures, Ponooc, ABN AMRO Ventures, Creandum, 1818 Ventures & Elkstone Partners. Previous angel investors include Zwift CEO and co-founder, Eric Min.
The fresh capital will be used to amplify Laka’s efforts to enable more customers to transition to more environmentally friendly modes of transport.
Tobias Taupitz, CEO and co-founder of Laka, commented: “We’re excited to welcome onboard the Cylantro team to Laka. Thomas and his team have built up a fantastic offering in France, and we can’t wait to ramp up our presence across the country. E-bikes are expected to outgrow car sales by 2025 in Europe and we see huge potential in France, where the sales of bikes and e-bikes are growing at double-digits. We are also excited to welcome Shift4Good as an investor, and we look forward to working with them to expand our commitments to decarbonising mobility, by making it easier for consumers to insure and protect their bikes or e-bikes.”
Laka’s main offering is collective-driven insurance – with its flagship product being award-winning bike, e-bike and e-cargo bike insurance – alongside other products such as personal liability, health & recovery and solutions for commercial partners. Laka uses a collective-driven insurance model to make insurance fair. Each month’s claims are shared amongst Laka’s collective of cyclists, so the monthly bill varies up to a guaranteed cap. Now cyclists only pay for what’s needed, not what’s expected.
Founded in 2017, Laka has fixed what customers typically dislike about conventional insurance: long contracts, tons of fine print, and poor customer service. Whilst insurers benefit when a claim is rejected, Laka earns a success fee only when a claim is settled, and thus aligns interest with its customers. Its customer-centric approach, which comes with zero excess and monthly contracts, has resulted in 5 consecutive wins of Best Cycle Insurance Provider.
Matthieu de Chanville, Co-founder and Managing Partner at Shift4Good, said: “It is a great honour to assist Laka in accelerating within the highly promising market of smart mobility. Laka returns insurance to its pure, mutual heritage. Laka’s members and their shared interests incentivise positive behaviour which in turn benefits the entire community. We have full confidence in the team, their tech stack, and the momentum of Laka. We are committed to providing substantial support in both Europe today and Asia tomorrow to further their mission of decarbonizing road mobility. Creating global leaders through innovative technology isn’t just our mission; it’s a daily passion, as exceptional entrepreneurs are pivotal in driving a sustainable economy.”
Today, Laka supports its customers with more than just insurance, with ancillary services accounting for an increasing amount of its revenue – proving its ‘verticalisation’ approach. Services are centred around value-add to its customers and tie into stringent ESG targets.
Examples include salvaging damaged bike parts and recovering stolen bikes, both with the aim of reducing the need for replacements and thus reducing carbon impact. Laka intends to add more services, for the benefit of e-bike riders, enthusiast cyclists and companies.
Insurance for the cycling and Green Mobility sectors are disparate and fragmented, with a huge opportunity to consolidate the market. Laka currently operates across 5 countries – the UK, France, Germany, Belgium and the Netherlands. Laka is licensed in the UK and the Netherlands as a Managing General Agent, which allows it to operate and serve customers across 31 European countries.
Laka’s acquisition of Cylantro accelerates the brand’s expansion to France through an established customer base and strong partnerships. This adds well to Laka’s existing partnership with leading sports retailer Decathlon in the country.
Cylantro’s CEO and founder Thomas Arnou has joined Laka to lead in France. Sales of e-bikes and bikes, as well as cycling adoption in France, are growing at the fastest rates among European countries, which in part motivated the expansion to the market. Cylantro is a Paris-based insurance broker with a focus on bicycles and e-bikes, personalised to the needs of its customers.
Thomas Arnou, CEO and founder of Cylantro, added: “Cylantro was in the unique position of having a lot of acquisition interest and, therefore, able to get a clear vision of the competitor landscape. We chose to join forces with Laka because of their aligned core principles – customer first and best-in-class claims handling. We’re ready to build the European leader together.”
