Oct 24, 2023

Neo Mobility secures $10 million Seed funding UAE-based electric vehicle (EV) last mile startup Neo Mobility has raised a $10 million Seed round from Delta Corp Holdings, Pyse Sustainability Fund, and angel investors. Founded in 2020 by Abhishek Shah and Anish Garg, Neo offers last-mile solutions through all-electric last-mile logistics services. The new capital investment will support Neo’s vision to scale its fleet of 5,000 two-wheeler and four-wheeler EV by 2025. Press release: Neo Mobility (Neo), the first all-electric last-mile logistics, mobility, and infrastructure company, has announced the launch of its innovative last-mile logistics solutions in the UAE after the successful completion of its pre-launch Seed funding. The cutting-edge sustainable solutions provider has raised $10 million in its initial close of funding from green asset financing platform Delta Corp Holdings, global logistics and distribution company Pyse Sustainability Fund, and other esteemed angel investors. The substantial capital investment will support Neo’s vision to scale operations to an impressive fleet of 5,000 two-wheeler and four-wheeler electric vehicles (EV) by 2025. Neo is the Middle East and North Africa’s (MENA) first B2B startup to offer last-mile solutions through a captive EV infrastructure business model, aligning with the UAE Net Zero and COP28 agenda to build a greener future. With over 90,000 motorbikes on UAE roads, it results in 480,600 tonnes of CO2 emissions per year, equivalent to over 53 billion smartphones charged or over 49 million gallons of gasoline consumed. Neo Mobility’s founders, Abhishek Shah and Anish Garg, bring a wealth of experience in developing and scaling regional logistics ventures. Abhishek, with a background in energy and logistics investment banking at PwC, previously played a key role in scaling TaxiforSure, the Indian marketplace car rental aggregator. Anish, former COO of Trukker, the Middle East's highly funded logistics firm spanning eight countries, also made significant contributions at Fetchr and successfully sold his start-up to Amazon. Abhishek Shah, CEO and Co-Founder of Neo Mobility, says, “We are committed to revolutionising last-mile logistics through our innovative all-electric vehicle solutions. The Seed Fund represents an exciting milestone in our journey, accelerating the transition to eco-conscious last-mile logistics. These funds will support the development of cutting-edge technology team expansions aimed at optimising fleet deployment and elevating the customer experience. Neo’s two-wheeler fleet sets a new standard in the UAE, featuring motorbikes rather than mopeds. The e-motorbikes offer superior durability, delivering enhanced riding experience and safety, with seamless adaptability similar to traditional IC engine bikes.” Mudit Paliwal, CEO and Founder of Delta Corp Holding, says, “Neo Mobility is an industry disruptor, leading the charge in sustainable logistics in the Middle East region. Neo Mobility exemplifies our dedication to sustainable logistics in the Middle East, and its vision and commitment to eco-friendly solutions align perfectly with regional sustainability goals. This investment marks an exciting expansion to our sustainable last-mile logistics presence, elevating our investment portfolio, which includes Zyngo and Three Wheels United in India, as we work towards a global EV strategy.” "Sustainability is no choice; it's a necessity. Our investment in Neo Mobility is the initial stride towards revolutionising Middle East last-mile logistics; its innovative approach aligns with our journey towards a greener future,” continues Kaustubh Padakannaya, CEO of Pyse Sustainable Fund. Enabling food aggregators, e-commerce platforms, and logistics companies to achieve their net zero goals, Neo will launch operations with its new fleet of GSO-certified EV motorbikes, with a driving range of 175 kilometres, approved by the Ministry of Industry and Advanced Technology (MOIAT) and Dubai Roads and Transport Authority (RTA). Ensuring operations are efficiently streamlined, Neo will also implement its EV smart charging infrastructure with battery swapping stations across the UAE, enabling Neo riders to swap batteries within 60 seconds. With stations strategically located across commercial hubs and districts, Neo will ensure rapid delivery solutions while providing customers with smart dashboard reports highlighting their CO2 emissions savings using Neo’s state-of-the-art solutions. Furthermore, Neo positions employee welfare at the focal point of operations. All Neo riders will be equipped with safety gear, smart helmets and telematics, eliminating mobile phone usage, and crash detection warnings. Neo is the first company to offer riders critical illness and injury insurance coverage along with life insurance, 24/7 rider and driver support and fixed working hours. Neo will also tap into the ride-hailing sector with its fleet of Tesla cars, with a phased rollout of state-of-the-art EV fast charging infrastructure across the Emirates, ensuring drivers can recharge their vehicles in less than 30 minutes. Neo Mobility plans to innovate leasing solutions, enabling drivers to pursue a lease-to-own model, empowering them to become entrepreneurs in their own right. Neo also envisions leasing its fleet to third-party logistics (3PL) companies, enhancing the adoption of sustainable transportation in the UAE and wider region. We are committed to delivering innovative solutions that redefine last-mile logistics in the UAE. Our technology-driven approach ensures safety and sustainability, setting new industry standards, while empowering stakeholders and businesses to build a greener future,” concludes Anish Garg, COO and Co-Founder of Neo Mobility.