Lula, often referred to as the “Stripe for insurance,” has secured $35.5 million in a Series B funding round following a surge in customer demand. Initially focused on developing an insurance API to eliminate the need for businesses to build their own insurance infrastructure, Lula’s services have expanded to offer a comprehensive range of insurance tools. These tools encompass risk management, claims management, policy management, and access to insurance coverage, with the aim of helping companies reduce insurance premiums and related expenses.

Lula’s strategic evolution has proven successful, as its customer base has grown significantly, from 99 businesses in February 2022 to nearly 4,000. While specific revenue figures remain undisclosed, the company’s co-founder and president, Michael Vega-Sanz, highlighted a 20-fold increase in monthly revenue since February 2022. This growth trajectory has propelled Lula’s valuation to five times its 2021 level.

The startup’s offerings primarily serve the car rental, trucking, and logistics sectors, as well as car-sharing platforms. Notably, Lula introduced a product tailored for the trucking industry, addressing the issue of continuous coverage payments for trucks that spend only a fraction of the year on the road. Lula’s innovative solution allows trucking companies to pay for coverage only during active road usage.

“When we talk to potential company executives or potential leadership or managers or just software engineers that are accustomed to these extremely high salaries, we don’t necessarily offer them what they’re accustomed to in terms of a compensation package,” Vega-Sanz admits. “And surprisingly, a lot of senior leadership appreciate coming into a company or a business that is not going to have to be in a position to raise capital in 12, 18 or 24 months and potentially take a down round.”

The recent funding, led by NextView Ventures and Khosla Ventures, among others, positions Lula to expand into new industries, including logistics, while also venturing into embedded insurance. The company’s capital-efficient approach, combined with its commitment to providing value in the insurance space, has attracted both investors and quality employees. Lee Hower, a founding partner at NextView Ventures, highlighted Lula’s unique position as a software technology provider that enhances businesses’ insurance processes, marking a significant advancement in an industry that has seen limited innovation over the years.