Allianz Direct, a digital-first German subsidiary of the insurance giant, has acquired the French home insurance business of ailing insurtech Luko for €4.3 million (around $4.65 million).
This was both expected and unexpected: The two companies were hoping to get the green light on a deal in November.
After all, Luko ambitioned to become a European insurtech unicorn on its own, and maybe it’s now paying the price for it.
But there’s also relief for some in knowing that the company won’t be sold for parts after all — and the business unit that will live on is arguably what it should have stuck to all along.
Along the way, things became more complicated and debt mounted as it expanded in other markets and made acquisitions: German startup Coya and fellow French startup Unkle, both in 2022.
Pitch, the company behind a collaborative presentation software for businesses, is scaling back and bootstrapping, with CEO and co-founder Christian Reber stepping down and two-thirds of its employees losing their jobs.
This translates roughly to 80 personnel, based on the 120 headcount figure Pitch has published on its about page.
As with just about every other VC-backed startup, Pitch has clearly faced challenging times in terms of maintaining growth and keeping their investors happy.
“Despite having more than 4 years of runway, we know that a sustainable path has a much higher chance of success than the path we were on,” Reber added.
“Going forward, we’ll be a significantly smaller team focused on creating maximum value for our customers and driving sustainable growth.”
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