Loxa, an FCA-authorised embedded insurtech, has raised £2.7m in seed funding to scale its insurance solution, which embeds accidental damage protection at the point of purchase.
Loxa says UK retailers are losing billions to product returns – a problem that costs the industry £27b a year, according to Retail Economics. It adds that, for furniture brands, the impact is disproportionate, saying that high logistics costs, resale write-downs and long lead times make every return far more expensive than in almost any other category.
"Furniture customers don't lack the desire to protect what they buy – they lack access to protection where they're actually shopping," says Loxa's co-founder and CEO, Jamie Hamer.
"Traditional schemes aren't where the customer is. We put protection at the checkout, and our partners see the difference immediately – Maker & Son reduced returns by 80%, and Rowen Homes has seen a 20%+ attach rate since going live last year. This investment lets us take that to every furniture retailer in Europe."
Loxa says it has taken on more than 45 live retail partners across furniture, eyewear, power tools, electronics, catering appliances and other categories since launching in 2023.
Loxa adds that the fundraise also marks a step-change in what it can offer retailers: "As a full-stack MGA, Loxa can now build and launch insurance schemes tailored specifically to the needs of its retail partners and their products, rather than only suggesting off-the-shelf solutions.
"Loxaʼs technology connects natively to over 70% of UK ecommerce infrastructure via apps for Shopify, Magento, WooCommerce, PrestaShop and BigCommerce, as well as direct API integrations. Loxa enables retailers to go live in as little as 48 hours, meaning the barrier to offering product protection has never been lower.
"With the seed round now closed, Loxa enters its next phase with both the capital and the leadership to execute at pace. Erjon Skora joined the business last year at a pivotal point as co-founder and MD, bringing over 16 years of experience across MGAs, insurers, financial institutions and online marketplaces, most recently as MD and head of insurance and product, EMEA at Cover Genius. His appointment reflects the ambition behind this raise – to build the defining embedded insurance platform for retailers across Europe."
Erjon concludes: "Closing the seed is the starting gun, not the finish line. We're heading into a Series A with traction, a clear European roadmap, and a system that onboards retailers in under 48 hours, integrates seamlessly, handles policy volumes at scale, and delivers an excellent claims experience. The next 18 months will define Loxa's position in this market, and we intend to own it."
Pictured: Loxa's London-based team
