Electric scooter company Fenix ​​acquires Palm for $ 5 million and manages to enter the Turkish market – TechCrunch

Abu Dhabi-based micromobility company Fenix ​​has acquired Palm, a shared e-scooter company in Turkey, for $ 5 million, the exact amount the company raised last November and last February during its initial round.

Although it has yet to raise a Series A round, Fenix ​​raised the necessary cash and capital to fund this purchase and expand into Turkey, soliciting additional capital from existing investors Maniv Mobility and Emkan Capital. Fenix ​​did not disclose the terms of the acquisition or how much it recently raised.

This acquisition marks Fenix’s expansion into its fifth Middle Eastern country and its thirteenth city since its launch last November, making it the largest shared micromobility operator in the region, ahead of regional competitors KIWIride, Careem and Arnab Mobility.

“Palm has a significant presence in Istanbul, and the city will be an important focus for our company in the short term,” Jaideep Dhanoa, co-founder and CEO, told TechCrunch. “Beyond Istanbul, we see a great opportunity in Turkey. The country is home to 83 million people and there are 24 cities with one million or more people. Mersin, for example, is another coastal city that Palm operates in today and in which we will continue to invest. “

Berhan Goskin and Alican İstanbullu, the founders of Palm, will continue to lead the expansion plans of the company and Fenix ​​in Turkey. Existing Palm shareholders will also migrate and support Fenix’s efforts to lead the market in Turkey, according to a company statement.

The Palm acquisition not only transfers Palm’s fleet of around 1,500 Ninebot e-scooters to Fenix, bringing the startup’s total vehicle size to 10,000, but also grants Fenix ​​an integrated permit with Istanbul. , a city of 15.5 million inhabitants.

“Recently, the Turkish Ministry of Transport legalized shared e-scooters nationwide in a very progressive and pro-competitive manner,” said Dhanoa. “This regulatory clarity increased the attractiveness of the market for investment and was a significant motivator for the transaction. There are various local market requirements to qualify for a five-year license, which is partly why we enter inorganically. With Palm, we now have a five-year license to share e-scooters in Turkey and look forward to receiving permits in some of the districts with the most potential in the country. “

Istanbul’s first round of applications for limited permits for electric scooters is due earlier this month, so the acquisition means that Fenix ​​did not need to apply for a new license. However, you will have to meet all the requirements of the local Turkish market.

Fenix ​​says it will begin rolling out several thousand of its vehicles, loaded with built-in hand sanitizers, in August, adding to Palm’s existing fleet, which will be renamed to reflect the new ownership. Fenix ​​did not disclose who its manufacturing partner is for its vehicles, but told TechCrunch that it is “not one of the usual suspects” and that the partnership is exclusive and involves joint development of custom vehicles for its markets.

As part of its entry into Istanbul, Fenix ​​also has plans to establish a field R&D center for software and hardware in order to “develop innovative technologies for the Turkish market and export to the Greater Middle East region. “according to a statement. .

“Turkey has some of the best tech talent in the region as a whole, and now that we will also be operating there, we are excited to harness that pool of talents to help us create solutions for the Turkey market, as well as apply them to the rest of our network. ”IQ Sayed, co-founder and CTO, told TechCrunch. “This is true for all of our offerings and all parts of our technology stack, but I am especially eager to increase our payments technology, machine learning, and IoT capabilities there. We will also look for local manufacturing opportunities. “


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