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Data automotive startup Otonomo to go public via SPAC

Data automotive startup Otonomo to go public via SPAC

Otonomo, the cloud-based software program startup that assist corporations seize and monetize related automobile knowledge, is headed to the general public market. The Israeli-based startup stated Monday it has agreed to merge with particular objective acquisition firm 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 standard IPO path in favor of merging with a SPAC, or clean examine firm.  Arrival, Canoo, Lordstown Motors, Luminar, ChargePoint, The Lion Electric and Proterra are simply a number of the transportation-related corporations which have introduced or closed their SPAC mergers previously a number of months.

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

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Otonomo stated it raised $172.5 million in non-public funding in public fairness, or PIPE, from traders that included Fidelity Management & Research Company LLC, BNP Paribas Asset Management Energy Transition Fund and Senvest Management LLC, with help from strategic traders Dell Technologies Capital, and Hearst Ventures. Current Otonomo shareholders will personal a majority of the mixed firm at closing. Otonomo could have greater than $307 million in money proceeds as soon as 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 circumstances.

Otonomo launched in 2015 with a cloud-based software program platform that may seize and anonymize car knowledge, which might then be used to create apps to offer companies resembling electrical car administration, mapping, subscription-based companies, parking, usage-based insurance coverage, site visitors administration, media and emergency companies. The firm’s platform is utilized by 16 car producers, fleets and greater than 100 service suppliers, in response to Otonomo.

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The firm has landed a dozens of consumers on its pitch that it will possibly assist corporations monetize all of the date working by means of their related autos. Otonomo says it securely collects the information, the place its then modified so corporations can use it to develop apps and companies for fleets, good cities and particular person prospects. The platform additionally permits GDPR, CCPA and different privateness regulation-compliant options utilizing each private and combination knowledge.

Otonomo’s progress might be measured — at the very least in a method — by analyzing the variety of knowledge factors that run by means of the platform. A yr in the past, the corporate stated its platform was taking in 2.6 billion knowledge factors a day from greater than 20 million autos by means of partnerships with automakers, fleets and farm and development producers. Today, the corporate stated the platform ingests greater than four billion knowledge factors per day from over 40 million world related autos. 

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The merger is anticipated to shut within the second quarter of 2021. Ben Volkow persevering with to function CEO of Otonomo, which is able to commerce on the NASDAQ trade.

EditorialTeam

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