Lula Technologies Inc., a fast-growing startup that provides insurance software for vehicle fleet operators, has raised $35.5 million in fresh funding from investors.

Lula announced the Series B funding this morning. According to the startup, Khosla Ventures and NextView Ventures were the lead investors. Bain Capital Chair Stephen Pagliuca participated as well along with a number of other backers.

Founded in 2020, Lula provides a platform that enables trucking companies to purchase insurance coverage for their vehicles. The startup also offers policies that provide coverage against cargo damage. Beyond the trucking segment, Lula markets its platform to rental car providers and other companies that operate vehicle fleets.

The startup enables customers to purchase standard auto insurance policies as well as pay-as-you-go plans. Those plans enable fleet operators to pay per day or pay per mile, according to Lula. The latter arrangement can be more cost-efficient for companies that don’t use their vehicles year-round.

Alongside its core insurance purchasing feature set, Lula offers a number of other tools.

One tool is designed to help fleet operators file insurance claims faster. According to Lula, users have access to automation features that reduce the amount of manual work involved in the process. After a claim is filed, the startup provides updates on key milestones in the review process.

Another Lula tool, LulaSafe, helps vehicle fleet operators collect driver information such as driving history. The startup says its platform assembles the information from hundreds of data points using machine learning algorithms.

Lula had just under 100 customers in February 2022. That number now stands at about 4,000, TechCrunch reported today. 

Lula’s revenue has increased in lockstep. It claims to have grown sales by a factor of 20 since last February. The startup estimates it will become profitable in about six months and expects to reach the $100 million annual recurring revenue mark within a year.

To support its business momentum, Lula plans to create new revenue streams by expanding its product portfolio. In particular, the company intends to launch a new insurance service geared toward the logistics sector. It’s also working on an embedded insurance tool, or a tool that enables other companies to bundle liability coverage with their own products.

Lula’s funding round comes a few weeks after another insurance technology startup, Accelerant, raised $150 million from investors. MassMutual Co. subsidiary Barings led the round. Atlanta-based Accelerant provides a platform focused on increasing the productivity of insurance underwriters, companies that work with insurers to develop and issue policies for customers.

Photo: Lula