Internet-connected vehicles are emerging as a valuable source of data both for the auto industry and external organizations looking to better understand driver behavior. However, meeting the stringent privacy regulations that govern such information is often a challenge for carmakers hoping to share their telemetry.

As a result, a growing number of them are turning to a startup called Otonomo Technologies Inc. that promises to simplify the task. The Israeli firm’s efforts today attracted a $25 million investment led by Delphi Automotive PLC, one of the largest auto parts manufacturers in the world. It was joined by Bessemer Venture Partners, StageOne Ventures and transportation-focused fund Maniv Mobility.

Otonomo will spend the capital on broadening the reach of its cloud-based data exchange. The platform serves as a marketplace where carmakers can sell vehicle information to municipalities, insurance companies and other third parties without having to sort out the logistics manually. The startup provides an interface for handling the various business tasks involved in transactions while automatically taking care of security in the background.

When a car maker uploads records to Otonomo’s platform, a patent-pending anonymization algorithm scrambles any personally identifiable data that they may contain to prevent potential privacy issues. The information then passes through a policy enforcement engine that can be configured to restrict usage based on a variety of factors. According to the startup, it’s designed to ease regulatory compliance for car makers that operate in multiple jurisdictions with different privacy regulations.

Once all is said and done, the processed data is made available to buyers in a standardized format that makes it relatively straightforward to combine telemetry from different carmakers. Otonomy offers the information as part of subscription-based packages that each company can customize according to its requirements. 

Besides Delphi, the startup also provides information to USSA, Nationwide and electronics giant Flex Ltd. among others. On the supply side, Otonomo said it’s working with nine car makers, including Mercedes-Benz owner Daimler AG. One of the reasons behind the startup’s rapid rise is the fact that its platform doesn’t require any special hardware besides the networking equipment that manufacturers already include in their connected vehicles.

Otonomo has raised a total of $40 million in funding to date.

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