Kinetic Announces $21 Million Series B Funding Round, Led by Menlo Ventures
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
SANTA ANA, Calif.–(BUSINESS WIRE)–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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