Data automotive startup Otonomo to go public via SPAC

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Otonomo, the cloud-based software program startup that help corporations seize and monetize related automotive knowledge, is headed to the public market. The Israeli-based startup stated Monday it has agreed to merge with particular objective acquisition company Software Acquisition Group Inc. II with a valuation of $1.four billion.

Otonomo is becoming a member of a rising pool of automotive startups which have sidestepped the normal IPO path in favor of merging with a SPAC, or clean verify company.  Arrival, Canoo, Lordstown Motors, Luminar, ChargePoint, The Lion Electrical and Proterra are simply a few of the transportation-related corporations which have announced or closed their SPAC mergers prior to now several months.

The capital offered by public markets has turn out to be too tempting for corporations that either have capitally intensive tasks — like trying to turn out to be a car manufacturer — or for these which are hoping to hurry up their progress. Otonomo falls in the latter camp.

Otonomo stated it raised $172.5 million in personal investment in public equity, or PIPE, from buyers that included Fidelity Management & Research Firm LLC, BNP Paribas Asset Administration Power Transition Fund and Senvest Administration LLC, with help from strategic buyers Dell Technologies Capital, and Hearst Ventures. Present Otonomo shareholders will personal a majority of the mixed firm at closing. Otonomo may have greater than $307 million in cash proceeds once the businesses mix.

Otonomo stated it plans to make use of money proceeds from the transaction to fund progress and speed up its entry into new markets and use instances.

Otonomo launched in 2015 with a cloud-based software program platform that can seize and anonymize car knowledge, which may then be used to create apps to offer providers reminiscent of electric car management, mapping, subscription-based providers, parking, usage-based insurance coverage, visitors administration, media and emergency providers. The corporate’s platform is utilized by 16 car producers, fleets and more than 100 service suppliers, in response to Otonomo.

The company has landed a dozens of consumers on its pitch that it could actually help corporations monetize all of the date operating by means of their related automobiles. Otonomo says it securely collects the info, where its then modified so corporations can use it to develop apps and providers for fleets, sensible cities and individual clients. The platform also allows GDPR, CCPA and different privacy regulation-compliant solutions using both personal and combination knowledge.

Otonomo’s progress may be measured — a minimum of in a method — by analyzing the variety of knowledge points that run by way of the platform. A yr ago, the company stated its platform was taking in 2.6 billion knowledge points a day from more than 20 million automobiles by means of partnerships with automakers, fleets and farm and development producers. Right now, the company stated the platform ingests more than four billion knowledge points per day from over 40 million international related automobiles. 

The merger is predicted to close within the second quarter of 2021. Ben Volkow continuing to serve as CEO of Otonomo, which can commerce on the NASDAQ change.

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