insurtech startup Lula programs to aggressively use and extend its product capacity now that it has elevated $18 million in new venture money.
Lula is an API (application programming interface) outfit that supplies insurance plan infrastructure for companies which include vehicle rental firms, trucking and logistic corporations, auto sharing platforms, and rentals for armed forces staff. The technological innovation assists companies deal with their insurance policies packages. It also operates with various insurance policy providers to make episodic coverage readily available.
Lula’s tools include client vetting, fraud detection, driver record checks, coverage administration and statements dealing with by means of its insurance partners. Lula phone calls itself “Stripe for Insurance” due to the fact although Stripe delivers payment infrastructure, Lula offers coverage infrastructure through its API.
The enterprise begun out as a automobile sharing app for college or university learners identified as Lula Rides out of a Babson School dorm room in Massachusetts. It expanded to a lot more than 500 campuses in all 50 states. The founders, twin brothers Michael and Matthew Vega-Sanz, moved again dwelling to Miami prior to the pandemic and when college campuses shut, they determined to repurpose the software to start Lula 2..
“We understood corporations preferred to vet their prospects, insure their automobiles on a per use foundation, and handle statements, but did not have the sources to do so,” Michael Vega-Sanz, co-founder and president, explained.
Lula formally launched in August 2020, doing the job with car or truck rental and car or truck sharing companies.
Founders Fund and Khosla Ventures led the Collection A spherical. SoftBank, Invoice Ackman and previous buyers Nextview Ventures and other individuals also participated. Lula claimed its buyers also include a variety of insurance policies and logistics teams these as Flexport.
The house owners program to use the funding to satisfy the demand of what they say is a ready checklist of approximately 2,000 corporations and to retain the services of aggressively to mature its 15-particular person workforce that is at this time at the company’s South Miami headquarters.
Lula is gearing up to broaden in a sector wherever startups and tech organizations based mostly in component on API technology are starting to be extra commonplace. They contain EIS, which not too long ago secured a $100 million investment decision from non-public fairness business TPG to enable it accelerate merchandise improvement across several item lines. The company’s cloud-based system consists of 1000’s of APIs built to assist insurers connect to or provide as a hub for a huge amount of insurtech and emerging systems. Raise Insurance policies raised $20 million in late spring to help increase its B2B embedded insurance coverage system, which includes a amount of API attributes.
Also in this category is Trōv, now in its third iteration with API and software package technologies targeted on embedded insurance policy.
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