A Manchester-based connected vehicle data company has secured a boost worth almost $16m.
Wejo Group, which floated on the Nasdag last year in a move that valued it at $800m, has completed a self-arranged $15.9m private investment in public equity (PIPE).
It was anchored by Sompo International Holdings, one of its major commercial partners, as well as current investors and certain members of Wejo’s board.
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In a statement released on LinkedIn, Wejo said: "Not only is this a major feat in the current economic climate, but it also serves to demonstrate our investors’, partners’, and directors’ confidence in our ability to improve business fundamentals.
"Together with Sompo, we can accelerate our entry into the Japanese market – as well as help them transform the end-to-end insurance sector and realize further revenue opportunities.
Additionally, our cost reduction efforts include implementing a hiring freeze, eliminating non-revenue projects and prioritising workflows on revenue generation.
"In total, these savings reduce our cash burn from $10m per month at the start of 2022 to a projected $5-6m per month by the fourth quarter of 2022."
As a result of its reduced expenses, Wejo has updated its 2022 financial outlook and now expects its 2022 adjusted EBITDA loss to be in the range of $85m to $95m.
The company has said that is a "significant improvement" compared to the previous expectations that were in the range of $110m to $120m.
Wejo added that it remains committed to achieving its revenue and vehicles on platform objectives for 2022.
Richard Barlow, Wejo Founder and CEO, said: "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.
"Sompo recognises 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."
Chief financial officer John Maxwell added: "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."
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