admin Kinetic Automation has secured $21 million in Series B funding. Menlo Ventures led this round, with contributions from Allstate Strategic Ventures and Liberty Mutual Strategic Ventures. Early investors Lux Capital, Construct Capital, and Haystack Ventures also joined.
Kinetic Automation’s Mission
Kinetic Automation aims to streamline EV repairs. They use robotic systems, computer vision, and machine learning to diagnose and recalibrate sensors. This technology is crucial for modern cars, loaded with high-tech systems.
Rising EV Demand and Repair Challenges
Despite growing EV demand, sales growth has slowed. High insurance and repair costs are major factors. A 2024 J.D. Power study found only 26% of U.S. car buyers are very likely to consider an EV purchase. Over 20% are very unlikely to consider an EV at all.
Kinetic Automation’s Solution and Industry Need
Kinetic Automation, based in Santa Ana, California, offers a solution. Their robotic system scans vehicles, diagnosing issues quickly. The software then recalibrates the vehicle’s digital systems. This process reduces repair times and costs. Traditional collision repair shops handle physical fixes well. However, ensuring sensors, software, and computers work properly is time-consuming and expensive. Kinetic Automation addresses this gap.
Vehicles enter Kinetic’s service bays and undergo a detailed scan. Machine vision sensors, including those on robotic arms, inspect the vehicle. The scan identifies systems needing recalibration. Kinetic’s software then initiates and tracks the fixes.
Expansion and Funding
Kinetic Automation has four service hubs in Las Vegas and Southern California. The $21 million funding will fuel further growth. Menlo Ventures’ Partner, Shawn Carolan, highlighted the startup’s impact. Pilot customers reported faster, cheaper repairs and increased efficiency.
Founders’ Expertise
CEO Nikhil Naikal, CTO Sander Marques, and COO Chris Weber co-founded Kinetic Automation. Naikal previously worked at Velodyne, a lidar sensor company. Weber has experience at Uber, while Marques developed engine control modules for high-performance vehicles.
Future Plans and Market Growth
Kinetic Automation plans to serve robotaxi fleets and autonomous vehicles. Currently, they focus on expanding U.S. service hubs and hiring technicians. They frequently work on Ford Mach-E, GM Chevy Bolt, Hyundai Ioniq, and some Tesla models. Market research firm Canalys forecasts 2.2 million battery and plug-in hybrid electric vehicle sales in North America in 2024. This represents about 12.5% of all new vehicle sales.
Impact on Insurance Costs
Motor vehicle insurance for EVs has contributed significantly to inflation. Naikal hopes Kinetic Automation can reduce these costs. This, in turn, may encourage more people to switch to electric vehicles. Kinetic Automation’s innovative approach promises to transform EV repairs. Their advanced technology and new funding position them for significant growth.
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