AXA XL leads $37m financing for AI-driven auto insurtech Zendrive
US-based data and analytics firm Zendrive has raised $37 million in its Series B funding led by AXA XL's insurtech venture capital fund XL Innovate.
Other participants in the funding included Hearst Ventures and existing investors ACME Capital, BMW iVentures, NYCA, and SignalFire, among others.
Zendrive plans to use the funds to continue bulding out its mobile driving safety solution and grow its team globally to deepen its focus on the global insurance market. The insurtech uses AI and machine learning to improve driver safety and help insurers accelerate their digital transformation.
“Zendrive was founded to make roads safe with data and analytics," said Zendrive CEO & co-founder Jonathan Matus. "As we enter this next phase of the business, we are excited to continue to push the innovation curve forward and align with partners who are similarly committed to improving driving behavior using technology and incentives.”
In addition to the financing, the company has launched a "first-of-its-kind" AI-powered predictive risk solution for stop sign compliance, aimed at the insurtech industry. The new solution, called FullStop, offers predictive capabilities "not achievable with traditional telematics factors".
Tom Hutton, who led the round at XL Innovate, serves as chairman of the board of directors at SoFi, said: “No one ever imagined that smartphone sensors could detect stop sign violations without dedicated hardware like dash-mounted cameras. Zendrive’s data science capabilities are pushing the envelope from what’s conceivable to what’s now currently possible.”
Hutton has joined the Zendrive board and is helping the company to pursue relationships throughout the insurance industry.
Sandy Weill, former chairman of Citigroup and the CEO of American Express’s insurance arm Fireman’s Fund Insurance Company, who joined both the investment round and Zendrive’s board of advisors, commented: “The increasing adoption of data and analytics is a trend that is shaping the future of insurance. The Zendrive team is focused on delivering value to insurance companies, platform providers and ultimately consumers. Large global auto insurers using Zendrive to power digital transformation report to the company improvements in loss ratios, which could lead to better pricing and safer roads for everyone. I am excited to be part of this revolution in the industry.”
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