Tallinn-based digital software platform DriveX has raised 1 million dollars in a round led by DEPO Ventures with the participation of Plug and Play Ventures. The company offers a web-based app to digitize vehicle inspection processes thanks to AI-powered vehicle verification with damage detection. The funding will help the startup boost its growth across Europe and beyond. The company will be also using the capital to emerge new areas in vehicle rental, leasing, and sales processes.
DriveX secures $1 million in funding for its AI-assisted vehicle inspection solution
DriveX, a tech startup that aims to save billions for car insurance and mobility companies, is announcing that it has closed a $1 million investment round led by DEPO Ventures. The round included Silicon Valley’s notable venture capital fund Plug and Play Ventures.
Alireza Masrour, General Partner at Plug and Play Ventures, commented: “When a valuable asset changes user or ownership, both parties seek to understand the history of its maintenance and use, as well as its current condition, as confirmed by a third party they can trust and seek advice from.
We at Plug and Play think that DriveX can be the company that people and the automotive industry trust. We are excited to be part of their journey as an investor and see how they innovate and bring more transparency to this market at both the B2B and B2C levels.”
Additional investors in the financing round include Fund Fellow Founders, Startup Wise Guys, and leaders in the insurance sector market in the region. The company’s fresh investor circle includes a number of renowned angel investors, including founders, executives, and early employees of Wise, Skeleton Technologies, and Katana.
Akim Arhipov, the founder of the investor network Fund Fellow Founders, commented: “As a stamp of Estonia’s outstanding angel investor community, this funding round brought a total of 37 angel investors into one syndicate. DriveX is now well equipped with unprecedented versatility in its efforts to build a scalable global company.”
Founded in 2019 by Rauno Sigur, Kentti Koppel, and Valter Läll, DriveX is digitising vehicle inspection processes with AI-assisted technology. The company is currently focused on the auto insurance industry, which is estimated to be worth more than $880 billion worldwide, and is automating pre-inspection processes, saving insurers up to 90% of inspection costs. The image recognition technology of the DriveX platform ensures the quality and reliability of the input provided by the insurance applicants about the condition of their vehicle.
Developed by a team experienced in driving innovation for Cleveron and Swedbank, DriveX stands out in the inspection technology space with its ease of use, as heralded by its rapidly growing user base. Companies can implement the DriveX web-based solution without having to write a single line of code, and customers can easily take real-time photos through the platform. The digitised process allows insurers to give immediate feedback to customers and automatically activate or deny the insurance policy.
DriveX is working with the largest international insurance corporations across the Baltics, Croatia, and Romania. The company’s customers include BTA from the Vienna Insurance Group, ERGO from Munich Re, and BALTA from the PZU Group. The new investment will catalyse DriveX’s efforts in expansion across Europe and beyond, and will support the emergence of new use cases in vehicle rental, leasing, and sales processes.
Having gathered a group of advisers from Estonia’s unicorns and soonicorns, DriveX is well on its way to launch the next phase of their technology – an automated visual damage detection solution. The new feature will help to eradicate fraud from vehicle inspections and accident recovery, and also has the potential to significantly transform all processes around a vehicle changing hands.
“We are creating the next market standard for remote vehicle inspections. With two billion vehicles in the world, there is great potential for understanding their condition and history at any given time. DriveX strives towards total transparency of vehicle inspection and vehicle history worldwide,” said Rauno Sigur, the co-founder and CEO of DriveX.