Wejo files notice to appoint administrator

Connected car data company Wejo has filed a notice of intention to enter administration with the SEC. This move indicates that the company is taking steps towards bankruptcy or receivership.

In the filing, Wejo said that it expects to receive a notice from Nasdaq that the company’s common shares and warrants are no longer suitable for listing. If the company receives such notice, it does not intend to appeal, and therefore, it is expected that its public securities will be delisted.

Wejo is also evaluating whether it will file ancillary insolvency proceedings for the company and its other subsidiaries in other jurisdictions, including in the US, in due course.

In 2022, Wejo reported net revenue of $8.4 million and a net loss of $159.3 million; a year after it projected that its net revenue will grow from an estimated $4.3 million in 2021 to $764 million in 2025 for a compound annual growth rate of 265%.

Bottom Line: “Both (Otonomo and Wejo) must diversify their revenue streams and move away from mainly collecting dollars for traffic management and advertising services, and insurers are clearly a target, but will they become victims? Sompo (Wejo’s insurance partner) is envisioning a future where connected vehicle data is used to reduce emissions and accidents on roadways and its journey with Wejo (pun intended as the company stands for “we journey”) is fueled by a social cause. Other insurers should concentrate on their bottom line and focus on the thing behind the thing, the OEM.” – A snippet from our research report titled “Connected Cars & Intelligent Insurers” (published in 2021).