Neom, the smart and sustainable regional development in northwest Saudi Arabia, announced that it has invested $175 million in German urban air mobility startup Volocopter.
The investment was part of the additional $182 million that Neom raised in its Series E funding round, which was also participated by Hong Kong’s GLy Capital Management.
In March, the aviation startup raised $170 million in Series E funding from investors that included funds by Korean WP Investment.
According to the announcement, the investment will give Neom a significant equity stake in Volocopter and forms part of its efforts to engage with the global electric vertical take-off and landing (eVTOL) industry.
With the fresh funding, Volocopter said it will accelerate electric urban air mobility. It seeks to launch the world’s first-ever eVTOL suite of services, replete with the company’s signature passenger air taxis, heavy-lift cargo drones, and its own ecosystem.
The deal also expands Neom’s partnership with Volocopter. The two launched a joint venture in December 2021 that will operate electric air taxi services in Neom to connect various regions in Saudi Arabia, including The Line, Oxagon, and Trojena.
Neom chief executive officer Nadhmi Al-Nasr said Noem and Volocopter will make concepts like air taxis an everyday reality for its residents and visitors.
“This crucial investment aligns with the ambitious plans announced by HRH the Crown Prince Mohammed bin Salman, the chairman of Neom’s Board of Directors, for the Kingdom to achieve sustainability and to develop Neom into an accelerator of human progress,” Al-Nasr added.
Neom is being built to be a destination and a home for people who want to be part of building a new model for exceptional liability, creative thriving business, and reinventing environmental conservation, according to the announcement.
The region will include hyperconnected, cognitive cities, ports and enterprise zones, research centers, sports and entertainment venues, and tourist destinations.
“This is the first time in history that eVTOLs, with their unique characteristics, are being factored into the design of a region that is being built from scratch,” Volocopter CEO Dirk Hoke said.