European market leader vialytics has secured a $10 million Series A investment led by venture capital investor Scania Growth Capital and with participation of existing investors EnBW New Ventures, and Statkraft Ventures. The fast growing company has developed an AI-powered Road Management System for infrastructure owners such as local authorities. With the investment, vialytics is driving its global expansion.
The vialytics system automatically collects and analyzes the condition data needed for regular maintenance and upkeep of roads. This also helps municipalities to keep their roads safe. Road rehabilitation measures are effectively planned on the computer using the vialytics road infrastructure SaaS tool — this is how sustainable road management works today.
"vialytics is an ideal fit for Scania Growth Capital's portfolio," explains Christian Zeuchner, partner at the new investor. "Their unique system fits well with our focus on mobility and AI solutions. Public administration is now ready for the digital age and vialytics has proven that the GovTech market is very attractive. With its SaaS solution, vialytics is targeting a huge market." Already 250 cities and towns in Germany and 50 more in France are working with the vialytics system. The Stuttgart-based company has customers also in Austria, Switzerland, Slovenia and the Czech Republic.
US market entry and product led growth
Part of the growth strategy is extensive further development of the core product of automated road assessment. “We invented the SaaS category of automated road management systems. This gives us the unique opportunity to develop a product from scratch that covers the users' workflows”, states Danilo Jovicic-Albrecht, co-founder of vialytics. Most recently, workflow features for bike lanes and winter road maintenance were released. Now, the development team is working at full speed on the automatic detection of defective manhole covers and water drains. In his role as Chief Revenue Officer, U.S. entrepreneur Andy Kozma supports vialytics in the rapid entry into the American market. With its "Build Back Better" maxim the US government is providing more than $100 billion for the rehabilitation of roads and highways.
"Our goals are ambitious. That's why our great team will grow across the board", states CEO and co-founder Patrick Glaser. The current 60 employees are planned to be doubled in the next 2 years. Theodor Schulte, Investment Manager at current investor EnBW New Ventures, confirms: "vialytics' unique offering transforms the management of one of the most relevant and largest assets - roads. The company has developed extremely well since our initial investment. We are convinced that the team will accelerate the company's growth even further based on this investment and the participation of Scania Growth Capital." Steffen Funck, Managing Director of the current investor Statkraft Ventures, comments: “We are convinced that vialytics' technology will ensure safer and cost-efficient roads for many more cities across Europe and the US, especially in times of tight public budgets and labor markets. We look very much forward to continue supporting vialytics' expansion."
About Scania Growth Capital
Scania Growth Capital is an investment vehicle funded by Scania and managed by East Hill Equity, focusing on investments in innovative B2B-tech companies. Scania is the leading provider of sustainable transport solutions. East Hill Equity is an experienced start-up investor with years of experience in different industries, who firmly believes that the relationship with its founders is the key asset. With offices in Stockholm and Berlin, East Hill Equity works with a flexible and fair investment approach on a long-term basis, supporting companies during their growth from seed to profitability.
The three pioneers Patrick Glaser, Achim Hoth and Danilo Jovicic-Albrecht founded vialytics in 2018. Since then, the Stuttgart-based company with 60 employees has been following an ambitious growth course. At the beginning of 2021, they reached the milestone of 100 customers. Today, 300 partner municipalities regularly control their roads with the vialytics system and derive measures from the collected data. "There is currently no system that meets municipal requirements better than ours," Patrick Glaser sums up. vialytics can meet the high demand from Germany and neighboring European countries thanks to a new collaboration with Scania Growth Capital as well as long-term investments by EnBW New Ventures and Statkraft Ventures. Co-founder and CTO Achim Hoth confirms, "Every citizen wants to be in livable cities and communities. Our Road Management System helps all municipalities manage their roads more efficiently and get the most out of their budget."
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