French insurtech company Luko has raised €50 million in Series B funding led by EQT Ventures. Existing investors Accel, Founders Fund and Speedinvest also participated in the round, alongside angels with insurance and technology backgrounds, including Assaf Wand, the CEO and co-founder of US unicorn Hippo Insurance.
The Paris-based startup, which offers home insurance to renters and owners, says it has grown six times bigger since closing its €20 million Series A about a year ago.
The B-Corp company’s growth is modeled around its Giveback program. Since day one, 70 percent of Luko’s premiums are pooled with other customers’ and this pool is used to pay compensation; 30 percent goes to 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.
Moving beyond insurance, the startup is developing its own hardware and AI technology to offer smart (and informed) home management tools, such as sensors to track water leakage and electrical consumption. The latest product launch is ‘Doctor House’, a video consultation service that provides expert advice on how to take care of one’s home and delay wear and tear.
“Our long term vision is to help build and democratize the sustainable homes of tomorrow, enabling everyone to live at home with peace of mind,” CEO and co-founder Raphaël Vullierme says.
The hefty new investment will go to product development, hiring and European expansion.
Photo: Co-founders Raphaël Vullierme and Benoit Bourdel