New Zealand-based artificial intelligence start-up Partly has secured US$50 million in Series B funding, valuing the company at approximately US$500 million. The Christchurch-founded firm, led by CEO Levi Fawcett, has rapidly emerged as a significant player in the automotive repair technology sector, offering AI-driven solutions to streamline parts identification and damage assessment.

Partly’s core product, known as Interpreter, enables mechanics to photograph damaged vehicles with a smartphone. The AI then analyzes the images to assess damage severity, determine repair viability, identify replacement parts, and assist in sourcing these parts. The technology addresses challenges stemming from the wide variety of vehicle makes, models, and component variations—estimated at around four billion parts combinations—along with inconsistent industry terminology.

Founded in 2020, Partly has spent five years developing and training the AI system with the help of a team of data scientists, aiming to improve operational efficiency and profitability in the traditionally low-margin automotive repair industry. According to Fawcett, vehicles have become more complex to fix over time, with repair costs increasing despite manufacturing costs declining significantly over the past century.

The recent funding round was led by DST Global, a global venture capital firm founded by Israeli billionaire Yuri Milner. This follows Partly’s earlier capital raises, including a NZ$37 million Series A round in 2022 and a NZ$3.7 million seed round in 2021 backed by Australian venture firm Blackbird and Rocket Lab founder Sir Peter Beck, who remains an adviser and early supporter.

Partly currently serves over 1,000 customers across more than 15 countries, with the United Kingdom constituting its largest market, followed by New Zealand and the United States. The company opened an office in Austin, Texas, in June and plans to focus on expanding its presence in the U.S., which Fawcett anticipates will become its largest market within the next year.

The new funds will primarily support enhancement of the Interpreter AI and workforce growth. Partly employs about 170 staff globally, with roughly 100 located in Christchurch. Plans are underway to hire at least 60 additional employees, many of whom will be based in Christchurch, identified by Fawcett as the firm's long-term research and development centre despite the area's limited talent pool.

Fawcett, a Canterbury University engineering graduate and former Rocket Lab navigation engineer, emphasizes a demanding work culture focused on purpose-driven effort. He describes typical workweeks ranging from 80 to 100 hours, driven by a mission to make vehicle repairs more accessible and efficient worldwide.

While Partly currently holds a market-leading position with its specialized AI, Fawcett acknowledges emerging competition as new start-ups attempt to apply AI to similar automotive repair challenges. The company distinguishes its product by publishing benchmarks showing Interpreter to be up to 20 times more accurate than general-purpose AI models developed by major tech firms.

Venture capital interest in Partly reflects confidence in the start-up’s niche expertise and scalability as AI continues to transform traditional industries. With its substantial infusion of capital and growing international footprint, Partly aims to maintain its technological edge and expand its impact within the automotive repair ecosystem.