KeyMe, a startup that could ensure you never get locked out again, has raised $20 million in Series B funding.
The company allows you to scan your key, either via mobile app or at an in-store kiosk, creating a digital copy. It can then ship you a key when you want a copy, or you can have one printed instantly at a kiosk — pretty handy if you get locked out.
Founder and CEO Greg Marsh said his goal is “disrupting the locksmith industry” by creating a key duplication service that’s more convenient, more affordable and even more accurate than existing services.
Apparently one of the biggest sources of mistakes when humans copy keys is choosing the correct blank key to start with.
“You have these very subtle differences that distinguish all these thousands of key types, making it very hard for a person to correctly classify keys,” he said.
In contrast, KeyMe relies on artificial intelligence and neural networks to perform this classification. As a result, Marsh said that traditional locksmiths might have an error rate of 15 to 20 percent, while KeyMe’s error rate is a “single digit percent.”
KeyMe copies can also be personalized. As for security, KeyMe kiosks require a fingerprint scan before you can unlock saved copies of your keys.
KeyMe previously raised $2.3 million in seed funding and a $7.8 million Series A. The new round was led by Comcast Ventures, with additional investment from Battery Ventures, White Star Capital, 7-Ventures (the venture arm of 7-Eleven), Ravin Gandhi, Coinstar founder Jens Molbak, The Michael Polsky Family Office and others.
Board member and WhiteStar managing partner Christian Hernandez noted that his firm has “doubled down multiple times” on KeyMe. Pointing to the excitement from retailers and the size of the $7.5 billion locksmith industry, Hernandez said investing in the current round was “actually one of the easiest conversations I’ve ever had.”
Marsh, meanwhile, suggested that KeyMe has big plans for growth.
“We’ve spent a couple of years dialing in the technology, building partnerships … really getting a product that resonates with the consumer,” Marsh said. Next up: “Really scaling the business.”
For example, he said the company currently has around 100 in-store kiosks across the United States, but the plan is to ship 1,000 new kiosks this year and 10,000 new kiosks in the next 36 months. Retail partners include Sears, Kmart, Bed Bath & Beyond, Rite Aid, Lowe’s, Albertsons, Ahold USA and the aforementioned 7-Eleven.