Roadzen secures patent for driver risk assessment tech

NEW YORK - Roadzen Inc. (NASDAQ:RDZN), known for integrating artificial intelligence into the auto insurance sector, has secured a patent in India for a novel driver risk assessment method. Despite its stock falling 85% over the past year, the company continues to innovate. The company’s drivebuddyAI platform’s Cognitive Assessment of Risk for Drivers (CARD) scoring system represents a shift from traditional driver scoring models by considering a broader range of risk factors. InvestingPro analysis shows the stock currently trades near $0.97, significantly below its 52-week high of $6.99.

The CARD system evaluates multiple simultaneous hazards, including drowsiness, collision warnings, seatbelt or phone-use violations, and environmental factors such as road conditions and weather. A proprietary clustering algorithm assesses compounded risks, providing real-time risk insights. This approach aims to encourage safer driving through personalized coaching and a rewards-and-penalties framework, which could also benefit fleet operators and insurers by enabling more accurate risk-based premium calculations and proactive safety measures.

According to Nisarg Pandya, CEO at drivebuddyAI, their experience with extensive driver data has demonstrated the need for a comprehensive system that unifies various data streams. With revenue of $42.89 million in the last twelve months and a robust gross profit margin of 59.46%, the company has shown strong operational efficiency. The CARD system has reportedly contributed to a significant reduction in accidents among users.

Adding to its credentials, drivebuddyAI has also received validation from the Automotive Research Association of India (ARAI) under India’s AIS 184 standard, which is expected to become mandatory for commercial vehicles by 2026. This makes it the only fully compliant driver safety system available to automotive OEMs in India.

Rohan Malhotra, Founder and CEO of Roadzen, highlighted the company’s commitment to innovation in the AI mobility and insurance sectors. He expressed confidence in the CARD system’s potential to improve road safety and insurance underwriting precision.

Roadzen’s pioneering work in telematics, generative AI, and computer vision has garnered attention from several top publications, and the company continues to focus on advancing AI research to prevent accidents, ensure fair premiums, and expedite claims processing. According to InvestingPro data, while the company shows innovation potential, it faces financial challenges with a weak health score of 1.07. InvestingPro subscribers have access to 11 additional key insights about Roadzen’s financial position and growth prospects.

The information for this report is based on a press release statement. Roadzen’s recent patent acquisition and validation by ARAI underscore its position in the AI-driven automotive safety and insurance landscape, with patents pending in the U.S. and Europe for its CARD scoring system.

In other recent news, Roadzen Inc. has made several strategic financial moves aimed at strengthening its financial position. The company has amended its Senior Secured Note Purchase Agreement, extending the maturity date of its $11.5 million senior secured notes to December 31, 2025. This extension, supported by Mizuho Securities USA LLC, is designed to enhance Roadzen’s financial flexibility. Additionally, Roadzen has issued a new warrant that allows for the acquisition of an additional 104,566 ordinary shares, increasing the total potential shares to 1,537,083.

In parallel, Roadzen has reduced its short-term liabilities by $5.5 million through a cash settlement and other financial maneuvers, including converting payables into shares. The company also settled $3.5 million in liabilities by issuing 1,227,867 ordinary shares to Marco Polo Securities, Inc. and Avacara PTE Ltd., entities associated with its leadership. Furthermore, Roadzen has expanded its AI-powered claims service with National Insurance Company Ltd. in India, integrating four additional regional offices into its platform, XClaim.

These developments reflect Roadzen’s ongoing efforts to improve its financial structure and market positioning. The company’s initiatives are part of a broader strategy to manage its capital structure effectively while advancing its technological offerings in the insurance sector. Roadzen’s actions underscore its commitment to enhancing operational efficiency and financial stability.

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