Nirvana Insurance, an AI-native commercial insurer, has secured $100m in a pre-emptive extension to its Series D funding round, pushing its valuation to $1.5bn.
The round was led by Valor Equity Partners, with existing backers Lightspeed Venture Partners and General Catalyst increasing their stakes, according to FF News.
The investment comes only months after Nirvana’s Series C in the first quarter of 2025, during which time the company has almost doubled its valuation.
Nirvana said the new capital will be used to speed up development of what it describes as the first AI-powered operating system built specifically for insurance, while expanding its telematics-driven offering beyond its current products.
“The promise of AI is not incremental; it gives us an opportunity to rethink industries entirely, from first principles and to create the best solutions for the challenges of today and tomorrow,” said Rushil Goel, chief executive of Nirvana.
“At Nirvana, we’re building insurance the way it needs to exist in the AI era: with data at the center, models trained on billions of real-world miles, and an OS that can redefine underwriting, claims, and services for the industry at scale.”
Nirvana’s platform is built on proprietary predictive models trained on more than 30bn miles of fleet telematics data.
This enables real-time decision-making across underwriting, pricing and claims, producing outcomes that go beyond marginal efficiency gains. Customers can receive upfront safety discounts of up to 20%, while insurers benefit from faster underwriting cycles, improved loss ratios and quicker claims resolution.
Investors say that performance has helped position Nirvana as a rare example of AI delivering measurable impact in a traditionally conservative sector.
“The generational companies to arise from the artificial intelligence era are those like Nirvana that have purposefully built AI-driven solutions that address fundamental pains in massive legacy industries both rich in data and bogged down by inefficient processes,” said Vivek Pattipati of Valor Equity Partners.
“This round isn’t just about reinforcing Nirvana’s extraordinary approach to proprietary telematics data, deep machine learning (ML) expertise, and compelling execution in underwriting and claims; it’s an opportunity for us to stake a claim in redefining an industry and exploring how Nirvana will apply its ‘N of 1’ AI capabilities to benefit customers beyond market-leading insurance products.”
The timing is significant for the trucking industry, which forms the backbone of US commercial auto insurance.
Following a surge during the pandemic, the sector has seen a sharp rise in company failures over the past two years, with insurance costs cited as a major factor.
That pressure has increased demand for insurers that price risk using live driving data rather than broad historical benchmarks.
Early backers argue Nirvana’s approach addresses that gap directly.
“Nirvana has executed quite flawlessly since Lightspeed first invested in the company’s Seed round back in 2021,” said Raviraj Jain, partner at Lightspeed Venture Partners. “Commercial insurance is a trillion-dollar industry stuck in the past, and it’s been incredible to see how quickly Nirvana’s AI models have been able to deliver material benefits to customers. While traditional carriers find themselves underwater because they’re pricing risk with incomplete information, Nirvana uses real driving data to train models that consistently outperform the market, delivering stronger loss ratios, faster claims, and more productive underwriting at scale.”
With fresh capital in place, Nirvana is now betting that its AI-first foundation can support broader expansion and help reset how commercial insurance is built, priced and delivered in a data-intensive economy.
Read the daily InsurTech news
Copyright © 2026 InsurTech Analyst
