Luko raises €20 million
Paris-based home insurance startup Luko has raised €20 million in a Series A round led by Accel, with support from Founders Fund and Speedinvest.
Founded in 2016, Luko’s first initiative – Luko Home Guardian device – was a small box that sticks on the electricity meter to read consumption in real time. Based on machine learning algorithms, the device detects all electrical appliances in the house to know when and how they consume energy, helping improve the protection of homes and alerting users to prevent risks. Then, in 2018, the startup announced the launch of a home insurance offering underwritten by La Parisienne Assurances and so far it has attracted 15,000 customers.
The startup, which is B-Corp certified and features a giveback scheme, is currently in the process of developing a door sensor and water sensor.
“We believe consumers need fairer insurance options that they can clearly understand and that will bring them peace of mind. While customer churn is traditionally an industry problem, Luko’s is nearly nil, and our Net Promoter Score is five times the industry average. We believe the future of homecare is in effectively protecting homes, and this investment will help us get there faster. We will use the new funding to accelerate our home protection technology development, expand from France across Europe and develop additional HomeCare Services.” – Luko cofounder Raphaël Vullierme.
“Insurance is still largely a very traditional industry. With only eight per cent online penetration, the whole industry is poised for change. Consumers have suffered long enough with poor home insurance options, and Luko is bringing a new option to market with fairness at its core. With an ambitious team, a sleek product, impressive technology under development and strong customer love, Luko will change the equation for millions of home insurance customers across Europe, as it pioneers an end-to-end homecare solution.” – Luca Bocchio, Accel.