Laka, a London-based green mobility insurance company, has raised US$10.4 million in a series B funding round.

The round was led by Shift4Good and MS&AD Ventures, with contributions from existing investors such as Ponooc, Achmea Innovation Fund, Creandum, and Republic.

The new funding will support Laka’s operations in nine EU markets and the UK.

The company provides insurance for e-bikes, e-scooters, and other green mobility vehicles. It plans to finalize a debt financing deal in the coming months to aid its acquisition strategy.

Laka has increased its market presence through acquisitions, including Luko’s e-scooter insurance portfolio in 2025. It also acquired CoverCloud’s bike insurance renewal rights in 2024 and French e-bike insurer Cylantro in 2023.

Laka offers insurance coverage for cyclists and micromobility users, along with services for retailers and manufacturers.

🔗 Source: Laka

🧠 Food for thought

1️⃣ Collective insurance innovation addresses longstanding industry pain points

Laka’s collective-driven insurance model represents a fundamental shift from traditional fixed premiums toward a community-based approach where cyclists share monthly claims costs up to a capped limit 1.

This model addresses key consumer frustrations by eliminating excess charges on claims, avoiding depreciation deductions, and offering monthly contracts rather than annual commitments 1.

The approach creates alignment between insurer and customer interests. While traditional insurers benefit when claims are rejected, Laka earns fees only when claims are settled successfully.

This structural alignment likely contributes to Laka’s seven consecutive “Best Cycle Insurance Provider” awards and demonstrates how fintech innovations can transform historically adversarial customer-insurer relationships.

The model’s success in cycling insurance provides a template that could potentially disrupt other insurance verticals where consumers face similar pain points around opaque pricing and misaligned incentives.

2️⃣ Micromobility insurance market undergoing rapid consolidation amid instability

Laka’s three acquisitions in 18 months reflect a broader consolidation trend in the fragmented micromobility insurance market, where established players are acquiring specialized startups to gain market share and technical capabilities.