UAE startup Neo Mobility raises $10M seed funding

UAE-based last-mile electric vehicle (EV) startup Neo Mobility has raised $10 million in seed round from Delta Corp Holdings, Pyse Sustainability Fund, and angel investors.

The startup plans to expand its operations to a fleet of 5,000 electric vehicles by 2025, supported by substantial capital investment. It has launched last-mile logistics solutions in the UAE following its successful completion of its pre-launch Seed funding, according to statement shared on Wamda.

"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,” said Kaustubh Padakannaya, CEO of Pyse Sustainable Fund.

B2B startup Neo, founded in 2020 by Abhishek Shah and Anish Garg, provides last-mile solutions using EV infrastructure, aligning with UAE Net Zero and COP28 goals.

UAE's 90,000 motorbikes contribute to 480,600 tonnes of CO2 emissions annually, equivalent to 53 billion smartphones charged or 49 million gallons of gasoline consumed.

Neo is set to launch its new fleet of GSO-certified EV motorbikes, approved by the Ministry of Industry and Advanced Technology and Dubai Roads and Transport Authority, to help food aggregators, ecommerce platforms, and logistics companies achieve net zero goals.

"The investment is part of Delta's commitment to eco-friendly solutions and aligns with regional sustainability goals. The move is part of Delta's expansion into sustainable last-mile logistics, alongside Zyngo and Three Wheels United in India, as part of its global EV strategy," said Mudit Paliwal, CEO and Founder of Delta Corp Holding.

The company said it will also implement an EV smart charging infrastructure with battery swapping stations across the UAE. It also plans to offer rapid delivery solutions and smart dashboard reports for customers, highlighting its CO2 emissions savings. The company will equip riders with safety gear, smart helmets, and telematics, eliminating mobile phone usage and crash detection warnings, said the statement.

Neo Mobility plans to expand its fleet into the ride-hailing sector in the UAE, with a phased rollout of advanced EV fast charging infrastructure.

The company also plans to offer leasing solutions, allowing drivers to pursue lease-to-own models and leasing its fleet to third-party logistics companies, promoting sustainable transportation adoption in the UAE and the region.