Kinetic Announces $21 Million in Additional Funding

June 24, 2024
Kinetic Hubs are staffed by certified technicians, and through revenue-sharing agreements with traditional collision repair centers, dealerships, and rental fleets.
Kinetic
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Kinetic, an automotive infrastructure company, today announced it has secured $21 million in Series B funding, led by Menlo Ventures, to accelerate business growth, add top technology and engineering talent, and expand its service hubs for repairing digital systems in modern vehicles, according to a news release.

Series B funding is the second round of funding for a business through investment, including private equity investors and venture capitalists. This round generally takes place when the company has accomplished certain milestones in developing its business and is past the initial startup stage.

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 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 at 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 an 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 the Author

FenderBender Staff Reporters

The FenderBender staff reporters have a combined two-plus decades of journalism and collision repair experience.

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