Mobility data provider Wejo announced that it has secured a USD 15.9 million additional PIPE (private investment in public equity) investment led by Sompo Light Vortex, a subsidiary of insurance provider Sompo Holdings, with participation from existing investors and certain members of Wejo’s board of directors.   

According to the terms of the agreement, Wejo is expected to sell ~11.3 million units (shares) in a private placement, with each unit consisting of one common share and one-third of a warrant. The company stated that it expects the additional liquidity raised via PIPE and Wejo’s ongoing cost reduction measures to ease its existing debt and equity facilities and extend its cash runway under current market conditions till the end of FY2023.

The company’s cost reduction policies implemented at the beginning of 2022 include a hiring freeze, elimination of non-revenue generating projects, and streamlined workflows to focus on revenue generation up until 2023. The policies are expected to reduce the cash burn to USD 5 million–6 million per month in Q4 2022 from ~USD 10 million per month. In anticipation of these changes, Wejo upgraded its FY2022 adjusted EBITDA (loss) guidance to USD 85 million–95 million from the previous USD 110 million–120 million. Additionally, the company reiterated its commitment to achieving the revenue and vehicles on platform targets for FY2022.