Market data provider Near to go public via SPAC merger

Market data provider Near to go public via SPAC merger

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Near Intelligence Holdings Inc., the operator of a cloud-based market data platform that helps companies with tasks such as measuring the number of shoppers who visit their stores, is set to go public. 

Near announced the move today. The Pasadena, California-based startup will list on the Nasdaq stock exchange by merging with KludeIn I Acquisition Corp., a special-purpose acquisition company. SPACs are investment vehicles created specifically to take another firm public.

The deal is expected to give Near a pro-forma market capitalization of nearly $1 billion. The startup is set to raise $268 million in gross proceeds from the SPAC merger. Additionally, Near has secured a $100 million committed equity financing facility from CF Principal Investments, an affiliate of financial services giant Cantor Fitzgerald LP.

Near’s platform gives brands access to anonymized data about more than 1.6 billion consumers and 70 million locations. Retailers rely on the startup’s data to measure the number of shoppers who visit their stores, as well as evaluate the popularity of competing stores. Near’s platform is also used by companies in other areas, including the financial services, hospitality and auto industries. 

Alongside market data, Near provides software tools that help organizations more easily glean useful business insights. The startup’s tools simplify tasks such as combining datasets from different sources and measuring the effectiveness of advertising campaigns.

Near says its offerings are used by 122 companies, including Ford Motor Co., MetLife Inc. and other major brands. According to a regulatory filing, the startup had an annualized revenue run rate of $50 million in the fourth quarter of 2021. Near’s net revenue retention rate, a measure of how customers increase their spending over time, was 120% in 2021, while its adjusted gross margin reached 71%.

“Enterprises around the world have trusted Near to answer their critical questions that help drive and grow their business for more than a decade,” said Near founder and Chief Executive Officer Anil Mathews, who cites a large total available market. “The market demand for data around human movement and consumer behavior to understand changing markets and consumers is growing exponentially and now is the time to accelerate the penetration of the large and untapped $23 billion TAM.”

The startup plans to use the proceeds from its merger with KludeIn to launch new features and make acquisitions. Near also intends to expand its presence in key segments such as the retailer sector.

Near has raised $134 million from inventors since launching in 2012. After the merger with KludeIn closes, existing shareholders will retain a 68% stake in the company, which is set to trade on the Nasdaq under the ticker symbol “NIR.” 

Image: Near

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