Luko, a Paris, France-based insurtech company that prioritizes social responsibility when protecting homes, raised €50m in Series B funding.
The round was led by EQT Ventures with participation from existing investors Accel, Founders Fund, Speedinvest, and Orange Ventures and angels with insurance and technology backgrounds, including Assaf Wand (CEO and co-founder of US unicorn Hippo Insurance). In conjunction with the funding, Rania Belkahia, Deal Partner at EQT Ventures, joined Luko’s board.
The company intends to use the funds to further invest in proprietary technology, product development, and the team.
Since launching in 2018, the founders have assembled a team of 85 people with diverse skills and experiences from leading organisations such as Airbnb, Facebook, Admiral, Uber, Doctolib, Axa and Withings.
Luko provides a refreshing take on property insurance for renters and homeowners alike. By placing social responsibility and prevention at its core, Luko has struck a chord with a growing base of users looking to align their values with purpose-driven businesses. Luko is now the leading French neo-insurer with more than 100,000 policyholders and pan-European expansion plans. Despite the COVID-19 crisis, Luko has grown more than 6x since its last funding round, making it one of the fastest-growing insurtech companies in Europe.
Co-founded by Raphaël Vullierme (CEO) and Benoit Bourdel (CTO), Luko is a B-Corp-certified company that aligns its growth with a novel insurance model centered around its Giveback program. Since its inception, 70% of Luko’s premiums are pooled with other customers’ and this pool is used to pay compensation; 30% go towards Luko’s management costs. At the end of the year, any premiums left in the pool that haven’t been used to refund claims are donated to charities chosen by policyholders.
Luko has been partnering with Munich Re and Swiss Re. Starting with proprietary hardware technology & AI, the team has been focusing on their preventive offering by providing sensors to track water leakage and electrical consumption. The latest innovation, Doctor House, is a video consultation service that provides expert knowledge on how to take care of one’s home and delay wear and tear. More than 1,000 policyholders signed up to this offer in less than two weeks, a further step towards the ambitious vision of proactive insurance that Luko stands for.
The company has more than 100,000 policyholders.