Written by Cláudio Afonso | info@claudio-afonso.com | LinkedIn | Twitter
Wejo Group announced Thursday the completion of a $15.9 Million private investment in public equity (PIPE) investment in the company, anchored by its major commercial partner Sompo International Holdings extending Wejo’s capital runway through late 2023.
Wejo’s cost saving initiatives implemented in 2022 reduce our cash burn from $10 million per month at the start of 2022 to a projected $5-6 million per month by the fourth quarter of 2022.
The company has agreed to issue and sell in a private placement an aggregate of approximately 11.3 million of the Company’s units, each consisting of one of the Company’s common shares and one third of one warrant per unit purchased.
The Company now expects its 2022 Adjusted EBITDA loss to be in the range of $85 million to $95 million for 2022, a significant improvement versus previous expectations in the range of $110 million to $120 million. The Company remains committed to achieving our revenue and vehicles on platform objectives for 2022.
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“Executing a successful capital raise in this economic environment is a major achievement for Wejo and reflects our investors’, partners’, and directors’ confidence in the Company’s ability to improve business fundamentals as we focus our portfolio of solutions around the traffic and insurance product lines,” said Richard Barlow, Wejo Founder and CEO.
“Sompo recognizes Wejo’s significant value proposition, and its new investment will help us continue to advance our Smart Mobility platform. Additionally, our continued commercial partnership will allow the Company to accelerate its entry into the Japanese market. Our proprietary platform and products aim to transform the end-to-end insurance market and help Sompo realize cost synergies and additional revenue opportunities,” Barlow added.
John Maxwell, Chief Financial Officer, said: “To work through these challenging times in the capital markets, we have taken measurable actions to accelerate our path to profitability, prioritizing growth in the marketplaces and SaaS offerings with the highest near-term revenue opportunities. Our long-term plans have not changed other than timing of when other marketplaces will be launched.
In addition to successfully raising additional capital through the PIPE offering, we have implemented a hiring freeze, eliminated non-revenue projects, and prioritized workflows to more squarely focus on revenue generation in the current year and into 2023. We will continue to pursue additional cost reduction initiatives, which will help us get to profitability sooner.”
In late June, Wejo announced a partnership with the automaker Ford Motor in Europe to give Wejo access to personalized connected vehicle data from Ford vehicles across the continent. The partnership focuses on defined data sets created specifically for end-to-end insurance in Europe.
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In mid-June, the company announced the launch of Wejo Labs, a cloud-based platform that runs traffic and mobility studies at scale with accurate Connected Vehicle Data (CVD).
“The platform allows researchers and data scientists from universities, research organizations and civil and traffic engineering consultancies to run traffic and mobility studies at scale with accurate CVD from tens of millions of connected vehicles across the US and Europe,” Wejo stated.
On June 15, Wejo unveiled — at MOVE 2022 (held at London’s Excel 15-16 June) — its smart platform, Wejo Autonomous Vehicle Operating System. AV-OS will give any AV developer, from OEM to fleet operator, unprecedented access and support.
Recently, the company announced an expansion and extension of its existing collaboration with Microsoft Maps, which will significantly enhance the capabilities of Microsoft’s mapping products, in multiple territories across the world.
Written by Cláudio Afonso | info@claudio-afonso.com | LinkedIn | Twitter