Kinetic Announces $21 Million Series B Funding Round, Led by Menlo Ventures
June 20 2024 - 11:30AM
Business Wire
Company Will Use New Funds to Accelerate Growth
and Expand Network of EV Service Hubs
Allstate Strategic Ventures and Liberty Mutual
Strategic Ventures Also Participate in Funding Round
Kinetic, an automotive infrastructure company that delivers
digital maintenance and servicing for EVs and AVs through its
network of service centers, today announced it has secured $21
million in Series B funding, led by Menlo Ventures. Other
participants in the round include returning investors Lux Capital,
Construct Capital and Haystack Ventures along with new investors
Allstate Strategic Ventures and Liberty Mutual Strategic Ventures.
Kinetic will use the new funding to accelerate its business growth
and continue to add top technology and engineering talent to its
team.
Kinetic currently operates four service hubs across the
nation—in Las Vegas and in Orange County, San Bernardino and Lake
Elsinore in California—and plans to launch four additional hubs in
the coming months to meet the growing demand for repair of the
digital systems that power modern vehicles. The company offers
scanning, programming and calibration of all modern vehicles
equipped with advanced driver assistance systems (ADAS) via its
Kinetic Hubs, which are staffed by certified technicians, and
through revenue-sharing agreements with traditional collision
repair centers, dealerships and rental fleets.
“Drivers are looking to maximize safety while minimizing
insurance spend, which, unfortunately, has been pressured by the
higher costs of repairing modern vehicles equipped with the
sensors, software and digital systems that add intelligence,” said
Shawn Carolan, Partner, Menlo Ventures. “We’re partnering with
Kinetic because its service model has the power to reduce costs by
using technology. By making digital repair faster, more accurate
and more efficient, Kinetic’s service hubs will ultimately drive
down costs and increase the adoption of environmentally friendly
vehicles such as EVs and plug-in hybrids. We’re committed to
partnering with innovators who are building the infrastructure of
the future, and we’re confident Nikhil and the Kinetic team have
the expertise to scale this model and help meet the increased
demand for efficient repair of modern vehicles.”
“Kinetic is laser-focused on solving consumers’ pain points by
leveraging AI and robotics to make modern vehicle repair effortless
and cost-effective,” said Nikhil Naikal, CEO and Co-Founder of
Kinetic. “We are proud to partner with Shawn and Menlo Ventures,
who are globally respected for their early investments in
technologies that have since become part of our everyday lives,
including Uber, Roku and Siri, and the rest of this group of
visionary investors as we scale our service model and drive EV
adoption by bringing down the total cost of ownership for
consumers.”
The costs of diagnosing and repairing the digital systems in
modern cars, and returning them to their factory-engineered state
of safety, are typically higher than with traditional vehicles
powered by internal combustion engine. In EVs, these costs can be
even higher, due to the vehicles’ complex, software-centric
architectures.
“Modern cars are increasingly becoming computers on wheels, and
just like we needed ‘Genius Bars’ when we left the typewriter era
and moved into the age of computers, the market for Kinetic’s Hubs
is set to accelerate quickly,” said Bilal Zuberi, General Partner
at Lux Capital and an early Kinetic investor and board member. “You
need very specialized software, systems engineering, AI and
robotics to automate the bespoke nature of aftermarket repair, and
Kinetic is successfully building exactly that.”
Sales of EV units globally, including fully battery-powered
vehicles and plug-in hybrids (PHEVs), were up 18% in the first
three months of 2024 compared with the same period last year,
according to a report from Counterpoint Research. A recent report
from technology company Mitchell found that EV collision claims
also hit an all-time high last year, underscoring the need for
scalable EV repair options. The report noted that EV repairs were
typically more complex than with traditional cars, as the EVs were
50% more likely to need some kind of sensor repair or calibration
operations. However, there is a significant shortage of certified
technicians who can properly service, repair and calibrate EVs from
any manufacturer, whether they simply need wheel alignment, a
cracked windshield replaced or more complex repairs following a
collision.
“Kinetic is revolutionizing the automotive market by addressing
a significant gap in repairing and maintaining the complex digital
systems in modern vehicles,” said Rachel Holt, Co-Founder and
General Partner with Construct Capital. “The company is rapidly
expanding its network of Kinetic Hubs, which utilize cutting-edge
robotics and AI to deliver precise, efficient and safe repairs. By
leveraging this software and automation, Kinetic not only ensures
vehicles are restored to their optimal performance, but also
significantly reduces repair times and costs. We are proud to
extend our partnership with Kinetic and support its continued
growth.”
Kinetic’s solution relies on proprietary software using AI,
computer vision and robotics technology that its certified
technicians operate to provide precision servicing for individuals
and industry partners, including collision repair centers, glass
repair centers, car dealerships and rental fleets.
ABOUT KINETIC
Kinetic is an automotive infrastructure company that delivers
effortless digital repair for modern vehicles, including EVs, AVs
and PHEVs. The company’s certified technicians leverage Kinetic’s
proprietary AI, computer vision and robotics to provide precise and
efficient digital repair of modern vehicles for the automotive
aftermarket. Kinetic is accelerating the EV transition by providing
the infrastructure required for mainstream repair and service and
is a catalyst for a connected EV ecosystem and aftermarket. Founded
in September 2021 by Nikhil Naikal and Sander Marques, Kinetic is
headquartered in Santa Ana, California.
For more information, visit Kinetic.auto.
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