Partly Group Ltd. raises $50M in Series B

Partly Group Ltd., a New Zealand-based startup, has successfully raised $50 million in a Series B funding round led by DST Global Advisors Ltd., valuing the company at $500 million. This fresh capital injection aims to support the company’s expansion into the U.S. automotive parts market, specifically targeting the collision repair sector. The company, founded in 2020 by former Rocket Lab engineer Levi Fawcett, focuses on leveraging artificial intelligence to improve the accuracy and efficiency of auto parts ordering systems.

The funding will primarily facilitate the establishment of Partly's first U.S. office in Austin, Texas, where the core executive team will be relocated. Partly's proprietary software, Interpreter, uses a multimodal AI model trained specifically on vehicle parts. It aims to streamline the parts ordering process for repair shops with its ability to read technical diagrams, analyze photos, and interpret written repair descriptions. This process is said to make ordering nine times faster while reducing parts returns by 2.4 times, presenting a significant advancement for an industry still largely dependent on manual ordering systems.

Partly's entry into the U.S. market is driven by its assessment of a potential $100 billion opportunity among approximately 250,000 collision repair businesses. According to Fawcett, the industry has lacked tailored AI solutions for managing part identification and ordering, areas where Interpreter could lead innovations. The model currently claims coverage of 91% of vehicles from 58 leading manufacturers, offering high accuracy through extensive training data acquired from government archives and manufacturer partnerships.

This fundraising follows a previous record-setting Series A round concluded in late 2022, which saw Partly secure NZ$37 million ($21 million) at a valuation of NZ$180 million. The Series A round was led by Octopus Ventures Ltd., marking it as the largest Series A ever achieved by a New Zealand company. Partly's growth trajectory reflects increasing investor confidence in AI-driven operations within the automotive sector, a sentiment underscored by DST Global's involvement, known for investing in companies like Anthropic PBC and Meta Platforms Inc.

Looking forward, Partly’s expansion into the United States will be keenly watched by competitors and industry stakeholders, as it seeks to reshape the collision repair market's existing workflows with its AI technology. The company is focusing on hiring new talent in engineering, product management, and business development to further accelerate its U.S. operations. As Partly embeds itself into the competitive U.S. landscape, its success may depend on regulatory considerations and its ability to form strategic partnerships with key local players in the automotive sector.