France-based InsurTech Luko is to acquire German startup Coya for an undisclosed amount to grow its European presence and get an insurance license from German regulators, a report by TechCrunch has revealed.
Luko, which raised €50m in Series B funding at the end of 2020, started as a home insurance company for both homeowners and renters but has now since expanded with further insurance products and services.
Luko said it’s a 100% share deal, which means that Coya investors are now Luko investors. Those investors include Valar Ventures, Headline and Roland Berger’s family office.
Luko adopts a direct-to-customer approach, whereby customers sign up on its website or in the app. Users can then chat with the company in the app directly. When the insurance pays a customer back, it tries to send the money as quickly as possible. For instance, customers can receive money instantly on a Lydiaaccount.
Coya offers various insurance products for the German market. Insurance products include home content, private liability, dog liability and bike insurance.
Following the acquisition, Coya will be called Luko Insurance AG. Coya’s 80,000 clients are joining Luko’s customer base, bringing Luko’s total to 300,000 clients.
Coya has obtained an insurance license in Germany. Luko will leverage that license across all its markets due to European passporting rules.
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