Startup Lula, positioning itself as the “Stripe for insurance,” has successfully secured $35.5 million in a Series B funding round following a significant increase in customer acquisition.
After TechCrunch covered Lula’s Series A funding of $18 million in July 2021, the company initially concentrated on creating an insurance API to help businesses eliminate the need for their own insurance infrastructure. Since then, Lula’s services have expanded to provide a comprehensive insurance solution, assisting companies in lowering their insurance costs and related expenditures. Currently, Lula provides tools for risk management, claims management, policy management, and access to insurance.
This strategic pivot has proven advantageous for the Miami-based startup, which now reports a significant growth in its customer base—from 99 businesses in February 2022 to nearly 4,000 by July. Although Lula has not disclosed specific revenue figures, co-founder Michael Vega-Sanz mentioned that their monthly revenue has grown 20-fold since February 2022.
“This funding will help us achieve profitability in the upcoming quarters,” he stated. “We anticipate surpassing $100 million in annual recurring revenue within the next three to four quarters.”
Lula currently services car rental agencies, trucking companies, and car-sharing platforms, with clients including Kyte, Turo, and State National. In May, they launched a product aimed at the trucking sector, allowing companies to pay only for the insurance coverage when their vehicles are in use, addressing a common issue where truckers traditionally paid for year-round coverage.
The startup’s remarkable growth in both customers and revenue has boosted its valuation fivefold compared to its 2021 levels, as noted by Vega-Sanz, who co-founded the company in early 2020 with his twin brother. The firm managed to secure this new funding within weeks.
The Series B financing was co-led by NextView Ventures and Khosla Ventures, which also saw participation from Founders Fund, Steve McLaughlin, Bain Capital’s Steve Pagliuca, and Nextera Energy. The newly acquired capital will enable Lula to extend beyond the transportation industry into sectors like logistics and expand its offerings, including plans for embedded insurance.
