Commercial Fleet Insurtech Nirvana Secures $57M in Series B Funding

Nirvana Insurance announced a $57 million Series B funding round with Lightspeed Venture Partners investing again to lead the round, and additional participation from General Catalyst and Valor Equity Partners.

The new funding positions San Francisco-based Nirvana to make substantial new investments in its AI and IoT capabilities while continuing to build its customer service, underwriting, and product development teams, the company said.

“Commercial fleets today produce a tremendous amount of data, yet most insurers still insist on a cookie-cutter approach to insurance that does nothing to incentivize safety. Nirvana is bringing insurance into the modern era, changing how the industry considers risk,” said Raviraj Jain, partner at Lightspeed Venture Partners, in a statement. “Their incredible growth is a testament to the opportunities AI and data analytics are opening up in fleet insurance and beyond, especially given that the IoT fleet management market is expected to continue growing.”

Nirvana said businesses in the trucking sector often operate on tight margins, and recent economic pressures like rising insurance rates are pushing many of these enterprises to the brink of closure. By collecting data points from tech-enabled fleets, Nirvana can precisely tailor its rates to individual fleets and reduce insurance costs by up to 20%. Nirvana’s policies are usage-based, so customers only pay for how much they drive and their specific risk profile.

Nirvana’s Safety Platform features a dashboard with AI-powered monitoring tools, enabling proactive risk-reducing and cost-saving changes that optimize routing, improve driver coaching, and help avoid fines, the company said. Additionally, through the online portal and availability of data from telematics and dashboard cameras, Nirvana decreases the time it takes to process claims.

Topics Mergers & Acquisitions InsurTech Commercial Lines Tech Funding