UK insurtech startup Loxa has secured £2.7 million in seed funding to expand its embedded accidental damage protection platform for retailers, targeting a growing problem in the retail sector: product returns. According to research from Retail Economics and ZigZag, UK retailers lose £27 billion annually due to returns, with furniture retailers facing particularly high costs.
© LoxaLoxa team at the London office.
Furniture returns are especially challenging because of logistics expenses, resale depreciation and long delivery lead times, making them more costly than returns in most other product categories. Loxa's platform aims to address this issue by integrating product protection directly at the point of purchase, allowing customers to add accidental damage coverage during checkout.
"Furniture customers don't lack the desire to protect what they buy; they lack access to protection where they're actually shopping," said Jamie Hamer, co-founder and CEO of Loxa. "Traditional schemes aren't where the customer is. We put protection at the checkout, and our partners see the difference immediately."
The company says its system has already delivered measurable results for retail partners. British furniture brand Maker & Son reportedly reduced returns by 80%, while home furnishings retailer Rowen Homes has achieved a 20%+ attach rate since implementing Loxa's protection offering.
Founded in 2023, Loxa currently works with more than 45 retail partners across sectors including furniture, eyewear, power tools, electronics and catering appliances. Clients include Rowen Homes, Maker & Son, eCatering, Toolden, Hyundai Tools and JCB Pro Tools. The company says hundreds of additional retailers are currently exploring the platform.
The new funding will allow Loxa to expand its technology and insurance offering. As a full-stack Managing General Agent (MGA) authorised by the UK Financial Conduct Authority (FCA), the company can design and launch customised insurance programmes tailored to specific retail products and categories.
Loxa's technology integrates with major ecommerce platforms including Shopify, Magento, WooCommerce, PrestaShop and BigCommerce, enabling retailers to add protection services quickly. According to the company, merchants can implement the solution in as little as 48 hours, lowering the barrier for retailers to offer insurance at checkout.
The company also recently strengthened its leadership team with the appointment of Erjon Skora as co-founder and managing director. Skora brings more than 16 years of experience in insurance, financial services and online marketplaces, most recently serving as Managing Director and Head of Insurance & Product for EMEA at Cover Genius.
"Closing the seed round is the starting gun, not the finish line," Skora said. "We're heading into a Series A with traction, a clear European roadmap and technology that enables retailers to launch embedded insurance quickly and at scale."
With the new funding secured, Loxa plans to expand its platform across European retail markets, aiming to become a leading provider of embedded product protection for ecommerce merchants.
More information:
Loxa
[email protected]
www.loxacover.com
