Nirvana Secures $57M in Series B Funding to Expand Its IoT-based Commercial Insurance Platform and AI-Powered Safety Program for Fleets

PR Newswire

Growing more than 30x since launching in early 2022, Nirvana brings modern insurance and cost savings to connected fleets

SAN FRANCISCO, Oct. 17, 2023 /PRNewswire/ -- Nirvana Insurance, provider of modern insurance for physical operations, today announced a $57 million Series B funding round. Lightspeed Venture Partners reaffirmed its commitment to Nirvana by returning to lead the round, with additional participation from General Catalyst and Valor Equity Partners. The new funding positions Nirvana to continue helping fleets utilize their IoT and sensor data to access insurance cost savings and customized risk management solutions.

"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. "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."

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.

"In the past few years, most fleets saw their insurance rates rise even though they were doing everything right. We believe they deserve better," said Rushil Goel, co-founder and CEO of Nirvana. "Nirvana is changing the paradigm by proving how a better customer experience—lower rates, faster turnarounds for quotes, and access to a full safety platform—is better for business, reflected in our market-leading loss ratio."

Customers experience many initial benefits with Nirvana, like receiving quotes in days instead of weeks and upfront savings of up to 20% for safe driving. But the advantages don't stop there: Nirvana's approach also improves fleet safety and expedites claims processing.

Traditionally, drivers only interact with their insurance when they have a claim. 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. Additionally, through the online portal and availability of data from telematics and dashboard cameras, Nirvana decreases the time it takes to process claims, helping fleets prevent fraud and get back on the road more quickly.

"With telematics data, Nirvana is looking at the whole picture of my fleet's performance," said Joe Gramc, CEO of Five Star Trucking. "Are they hard-braking? Speeding? Changing lanes abruptly? Where other providers stay at arm's length, Nirvana's proactive safety recommendations ensure that our fleet is following local and federal safety regulations."

Capital support from its Series B will allow Nirvana to make substantial new investments in its AI and IoT capabilities while continuing to build its customer service, underwriting, and product development teams. Nirvana aims to bring its cost-saving, risk-tailored, and safety-enhancing solution to more fleets, even while opening the door to more insurtech innovation in other geographies and segments.

About Nirvana Insurance

Nirvana was founded in early 2021 with the intent of bringing the analog commercial insurance landscape into the modern digital world, using vast troves of IoT data derived from sensors already aboard most heavy trucks. The company is using telematics data to transform the stubbornly analog world of truck insurance to help fleets mitigate risk, improve driver performance, drop costs, and make the insurance process easier for everyone. The upside is improved safety for everyone on the road.

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