US insurtech start-up Lula raises $35.5m Series B funding
Miami, Florida-headquartered insurtech Lula has closed its Series B funding round at $35.5 million as it seeks to expand into new areas of the market.
Led by NextView Ventures and Khosla Ventures, the round saw additional participation from Founders Fund, Plug and Play Ventures, Financial Technology Partners’ founder and managing partner, Steve McLaughlin and Steve Pagliuca, co-chair of Bain Capital and co-owner of the Boston Celtics.
Founded in 2020, Lula currently supports the trucking and auto industries with API-based tools for risk, claims and policy management, and access to insurance coverage through its insurance platform.
Partnered with insurance providers, it offers the infrastructure required by these industries to manage insurance-related operations, extending to customer vetting, fraud detection, driver history checks, policy management and claims handling.
Having previously raised $18 million in its Series A funding round of July 2021, the insurtech’s larger Series B confirms its investors’ rising confidence in the upward trajectory of its growth.
Lee Hower, lead investor and founding partner at NextView Ventures, says the company’s “scalable insurtech solution” made its decision to increase its investment “an easy one”.
This confidence is reflected in the company’s reported results. Growing from 99 business customers in February 2022, Lula now claims to be serving “nearly 4,000 companies” as of July 2023, with its monthly revenue reportedly multiplying 20-times during that time.
The company’s latest announcement confirms that it will apply the funding to not only expand its current user base, but to branch out into other sectors beyond the trucking and auto industries.
“Today, less than 10% of the world’s population has access to an insurance offering,” comments Michael Vega-Sanz, co-founder of Lula. “This funding will allow us to further build and expand so we can continue providing a best-in-class insurance product in the market.”