Fenix Acquires Palm for $5M, Expands to Turkey

Fenix Expands into Turkey with Acquisition of Palm

Fenix, a micromobility firm headquartered in Abu Dhabi, has finalized the acquisition of Palm, a Turkish shared e-scooter company, for a sum of $5 million. This figure corresponds precisely to the capital Palm secured during its seed funding rounds in November and February.

Despite not yet having completed a Series A funding round, Fenix successfully assembled the necessary funds and equity to facilitate this acquisition and extend its operations into the Turkish market. Additional investment was sourced from current stakeholders, including Maniv Mobility and Emkan Capital.

Strategic Expansion and Market Position

This acquisition signifies Fenix’s entry into its fifth country within the Middle East and its thirteenth city overall since its launch last November. Consequently, it now stands as the largest shared micromobility operator in the region, surpassing competitors such as KIWIride, Careem, and Arnab Mobility.

“Istanbul holds a significant position for our company, and will be a primary area of focus in the immediate future,” stated Jaideep Dhanoa, co-founder and CEO, in an interview with TechCrunch. “We also foresee substantial opportunities throughout Turkey, a nation of 83 million inhabitants with 24 cities exceeding a population of one million. Mersin, a coastal city where Palm currently operates, represents another area where we intend to continue investment.”

Leadership and Integration

Berhan Goskin and Alican İstanbullu, the founders of Palm, will maintain their leadership roles and oversee Fenix’s expansion initiatives within Turkey. Furthermore, existing Palm shareholders will transition to support Fenix’s efforts to establish market leadership in Turkey, as outlined in a company statement.

Fleet and Permit Advantages

The acquisition transfers Palm’s fleet of approximately 1,500 Ninebot e-scooters to Fenix, increasing the startup’s total vehicle count to 10,000. Importantly, it also provides Fenix with an existing operating permit within Istanbul, a metropolis of 15.5 million residents.

Dhanoa explained, “The Turkish Ministry of Transport recently enacted national legislation legalizing shared e-scooters in a forward-thinking and competitive manner.” He continued, “This regulatory clarity heightened the market’s appeal for investment and served as a key driver for the transaction. Securing a five-year license involves meeting several local requirements, which is why we pursued an inorganic entry strategy. With Palm, we now possess a five-year license for e-scooter sharing in Turkey and anticipate receiving permits in some of the country’s most promising districts.”

Regulatory Compliance and Deployment

The initial application deadline for Istanbul’s capped e-scooter permits passed earlier this month, meaning Fenix avoided the need to apply for a new license. However, the company will be required to adhere to all applicable Turkish market regulations.

Fenix plans to begin deploying several thousand of its vehicles, equipped with integrated hand sanitizers, in August, supplementing Palm’s current fleet, which will be rebranded to reflect the change in ownership. While the identity of its vehicle manufacturing partner remains undisclosed, Fenix confirmed to TechCrunch that it is “not a conventional supplier” and that the collaboration is exclusive, involving the co-development of customized vehicles for its target markets.

Investment in Research and Development

As part of its entry into Istanbul, Fenix intends to establish a local research and development center dedicated to software and hardware innovation. This center will focus on “developing groundbreaking technologies tailored for the Turkish market and for export to the broader Middle East region,” according to a company statement.