Terminal, a Y Combinator grad, raised $20M USD Series A led by Battery Ventures. The telematics API platform plans to scale from 17 to 30 staff and expand its Toronto office.
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Terminal, a Toronto-based telematics data integration platform, has raised a $20-million USD ($28.2-million CAD) Series A round led by Battery Ventures. The round included new strategic investors Penske Transportation Solutions and Intact Private Capital, the investment arm of insurance giant Intact, which is also a Terminal customer. Y Combinator and Wayfinder Ventures returned as well. Battery Ventures general partner Marcus Ryu will join the board.
The company graduated from Y Combinator in 2023. Co-founder and CEO Raghav Midha said he has focused Terminal on perfecting its product rather than chasing growth. Now it plans to scale, moving from a team of 17 to roughly 30 by year-end and upgrading to a larger Toronto office.
Terminal offers a universal API that connects insurance products and fleet software with telematics data – vehicle information such as speed, location, and dash-camera footage from commercial trucks. The data feeds into fleet management, logistics, fleet financial services, and commercial auto insurance platforms. Midha said the company has secured several large, publicly traded, and Fortune 500 customers with minimal sales effort.
“We only have one salesperson, and that’s reflective of how much we’ve been focusing the last few years on just the product,” Midha told BetaKit. Most customers sought out Terminal first, he added.
Commercial auto insurance accounts for roughly half of Terminal's revenue. It is a difficult industry in Canada and the United States. Terminal lets insurers base pricing on actual driving data rather than self-reported information. The company supports more than 325 telematics integrations, processes about two terabytes of data per week, and has ingested more than five billion kilometres of historical driving data to date. Midha wants to push that to a petabyte scale.
“The previous challenge as to why telematics couldn’t cross into commercial auto insurance is because the fleets are fragmented and using all of these different devices and hardware types,” Midha said. “An insurance company, like an Intact, can’t do hundreds of integrations and then build the supporting data infrastructure to be able to manage that.”
Terminal identified an inflection point late last year when it added former BenchSci executive Eran Ben-Ari as its first COO. The Series A funding will push the company into a growth phase. Midha said Terminal's Toronto location gives it access to engineering and commercial talent while remaining one flight from every major U.S. and Canadian city.
“In a year or two, I think Terminal is continuing to be, and expand as, the default telematics data infrastructure for the commercial fleet economy,” Midha said.
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