Partly Secures £38m and Takes AI for the Automotive Sector to the US

The funding round, led by Insight Partners with participation from existing investors Index Ventures and LocalGlobe, will accelerate Partly's expansion into the United States and further develop its AI-powered platform. The company, which was founded in New Zealand in 2021 and now has its headquarters in London, has developed the Interpreter AI model, which is designed to automate and streamline the identification of automotive parts for repair shops, insurers, and suppliers.

The Problem: A Fragmented Supply Chain

The automotive repair industry is a sprawling, fragmented ecosystem. When a vehicle is involved in an accident or requires maintenance, the process of identifying the correct parts can be time-consuming, error-prone, and inefficient. Repair shops often rely on manual lookup processes, multiple software systems, and phone calls to suppliers, all of which introduce delays and opportunities for mistakes.

This fragmentation is costly. A single misidentified part can lead to delays, additional labour costs, and customer dissatisfaction. For insurers, inaccurate part identification can result in inflated claims and inefficiencies in the claims process.

Partly's Interpreter AI model aims to solve this problem by providing a unified, intelligent layer that sits above the fragmented systems.

The Solution: Interpreter AI

The Interpreter AI model is designed to understand and interpret automotive part data from multiple sources, including original equipment manufacturers (OEMs), aftermarket suppliers, and salvage yards. It uses natural language processing (NLP) and machine learning to analyse descriptions, part numbers, and specifications, and then matches them with the correct parts.

The platform integrates with existing repair shop management systems and parts supplier databases, allowing users to identify parts quickly and accurately. This reduces the time spent on manual lookup and minimises the risk of ordering incorrect parts.

The Series B Funding

The $50 million Series B funding round represents a significant vote of confidence in Partly's vision. The company plans to use the capital to:

Expand into the US market: The US automotive repair market is massive, with millions of vehicles repaired annually. Partly sees a significant opportunity to streamline the supply chain and improve efficiency.

Develop the Interpreter AI model further: The company will continue to train its AI model on more data, improving its accuracy and expanding its capabilities.

Grow the team: Partly plans to hire additional engineers, data scientists, and sales professionals to support its expansion.

Funding Round Amount Lead Investor Purpose

Series B $50M (£38M) Insight Partners US expansion, AI development

Series A $15M Index Ventures Product development

Seed $5M LocalGlobe Initial product launch

The US Opportunity

The US automotive repair market is one of the largest in the world, with an estimated 300 million vehicles on the road and an average of 40 million used cars sold annually in the US market. The average age of vehicles on the road continues to rise, with the average age reaching 12.5 years. Cars that are 6 to 10 years old require parts replacements at a higher rate than newer vehicles, creating a consistent demand for repair parts. However, the supply chain is complex, with a mix of OEM dealers, aftermarket suppliers, and salvage yards.

Partly believes its AI platform can help streamline this complexity, making it easier for repair shops, insurers, and suppliers to find the right parts quickly. The company's expansion into the US is a strategic move to tap into this large and growing market.

The Competitive Landscape

Partly is not alone in the automotive AI space. Competitors include SpareParts and Automatic, which also use AI to identify and match parts. However, Partly's focus on the repair supply chain and its development of a specialised AI model set it apart.

The company's proprietary data and advanced NLP capabilities give it a competitive edge. By training its model on a wide range of data sources, Partly can provide more accurate and reliable results than generic search tools.

Partly's $50 million Series B funding round is a testament to the growing importance of AI in the automotive industry. As vehicles become more complex and the supply chain becomes more fragmented, the need for intelligent, automated solutions will only increase.

Partly's expansion into the US market positions the company for significant growth. With its Interpreter AI model, the company has the potential to streamline the automotive repair supply chain, reducing costs and improving efficiency for repair shops, insurers, and suppliers alike.

The automotive industry is undergoing a digital transformation, and Partly is well-positioned to be a key player in that transformation.