French startup Luko raises $60 million Series B
Paris-based smart home MGA Luko announced it has raised a $60 million Series B funding round (€50 million) in a round led by EQT Ventures, with existing investors Accel, Founders Fund and Speedinvest also participating. Some angel investors such as Assaf Wand (co-founder of Hippo Insurance), Robert Gentz (CEO of Zalando ), Brent Hoberman (co-founder of lastminute.com and made.com ), Rachel Delacour (CEO of Sweep ), Thomas Plantenga (CEO of Vinted) also participated in the round.
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 100,000 customers. Its latest product launch is ‘Doctor House’, a free home-checkup service via teleconsultation, professional advice, and support tutorials.
The B-Corp company’s growth is modeled around its Giveback program. Since day one, 70% of Luko’s premiums are pooled with other customers’ and this pool is used to pay compensation; 30% 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. The company has been partnering with Munich Re and Swiss Re.