Today new vehicles will yield a treasure trove of data. The data would remain undisturbed without the proper resources and make it useless.
Many companies have arisen to help automakers handle and leverage the data generated by connected cars. Israeli startup Otonomo is one of those players that leapt onto the scene in 2015 with a cloud-based software platform collecting and anonymizing vehicle data so that it can then be used to build applications for services such as electric vehicle maintenance, subscription-based charging, parking, routing, usage-based insurance and emergency service.
This week the company revealed it has raised $46 million to take on its automotive data platform. The capital was raised in a Series C funding round which included SK Holdings, Avis Budget Group and Alliance Ventures investments. Also taking part were current investors Bessemer Investment Partners. To date, Otonomo has earned USD 82 million.
According to the company, the funds will be used to help Otonomo scale up its business, improve its products and help it stay competitive. Otonomo also aims to expand to new markets, particularly in South Korea and Japan.
“We now have the expanded capital needed to deliver on our dream of making car data as useful as possible for the entire transportation ecosystem, while adhering to the strictest standards of privacy and protection,” said Otonomo CEO and founder Ben Volkow in a statement.
The pitch of Otonomo focuses on creating ways to monetize connected car data while keeping it safe from capture. After the data is obtained in a safe way, the application updates it so that businesses can use it to build applications and services for fleets, smart cities and individual customers. The platform also allows solutions that comply with GDPR, CCPA and other privacy regulations, using personal and aggregate data.
Today, Otonomo’s network takes 2.6 billion data points a day from over 20 million vehicles through collaborations with more than automakers, fleets, and manufacturers of farms and construction. Otonomo has over 25 collaborations, a list containing Daimler, BMW, Mitsubishi Motor Company and Avis Budget Group. The company said it was getting ready to put on seven more customers.
Based on projections, the potential for Otonomo is increasing, including one from SBD Automo the predicts connected cars will account for more than 70 per cent of cars sold in North American and European markets by 2020.