London-based Tractable is a software company that develops artificial intelligence (AI) for accident and disaster recovery. In a recent development, the company announced that it has raised $60M (approx €50.37M) in its Series D round of funding. With this deal, Tractable claims to have become the world’s first computer vision ‘unicorn’ for financial services.
The round was led by Insight Partners and Gerogian. And with this development, the company has now raised a total of $115M (approx €96.65M) in funding and is currently valued at $1B (approx €839.54M).
“AI for accident and disaster recovery”
Tractable was founded in 2014 by Adrien Cohen, Alexandre Dalyac, and Razvan Ranca. The company develops artificial intelligence systems for accident and disaster recovery. Through the use of deep learning to automate visual damage appraisal, Tractable’s AI looks at photos of the damage and predicts repair costs.
By providing its AI to the insurers worldwide, Tractable claims to settle claims quickly and efficiently, which in turn impacts livelihoods. Its AI solutions process over $2B a year in vehicle repairs and purchases, and have been deployed by over 20 of the global top 100 insurers across Europe, North America, and Asia.
The company reports that it has already recorded 600 per cent revenue growth in the past 24 months, in part through attracting new customers such as GEICO, the second-largest auto insurer in the US.
Some of the Tractable’s other customers include Tokio Marine Nichido, Mitsui Sumitomo, Aioi Nissay Dowa and Sompo Japan, one of the largest P&C insurers in Japan; Covéa, an auto insurer in France; Admiral Seguros, the Spanish entity of UK leader Admiral Group; and Ageas, a UK insurer.
How does it work?
Suppose if one gets into an accident, they (or their repairer) can click photos of the damage and submit it to their insurer. This is analysed by Tractable AI Review and AI Estimating products in real-time to help make decisions that can otherwise take days, such as predicting whether the car is repairable or assessing what repairs should take place. This can help customers get back to normal faster after an accident.
LKQ North America, the provider of alternative vehicle parts and an automotive recycler, already uses Tractable’s AI to optimise the recycling of end-of-life vehicles in North America. Automotive companies and auto leasing financial institutions will also be able to benefit from the technology.
Alex Dalyac, CEO and founder of Tractable, says, “Six years ago, we founded Tractable to bring the AI breakthrough in image classification to the real world. We cracked how to assess cars, helping over a million people recover from accidents, and helping recycle cars that couldn’t be repaired. We’ve turned $55M raised until now into $1B of valuation. And yet, there are other image recognition tasks out there and more AI breakthroughs to come. Next up for us is homes.”
Capital utilisation
The proceeds from this round will help Tractable to double down on accident recovery, the company’s core business. It will also invest in new AI solutions for assessing the condition of a car, allowing users to understand vehicle damage down to individual parts – to enable transparent sale and purchase decisions.
Additionally, the round will fund the application of Tractable’s technology to assess homes. Working with a global insurer based in Japan, Tractable will help homeowners recover faster from a typhoon by allowing them to submit photos and obtain an AI-accelerated claim payout.
