newmo raises approximately JPY 6.3bn in Series A Extension
Establishes "newmo Tokai" in Nagoya and "newmo Okinawa" as new companies
newmo has raised approximately 6.3 billion yen through a third-party allocation of shares to multiple investors, including existing investors, in an additional Series A round. This brings the total Series A funding to approximately 16.7 billion yen, with cumulative funding since founding reaching approximately 18.7 billion yen.
newmo is a startup founded in January 2024, aiming to realize "sustainable regional transportation from a user perspective." In March, they acquired management rights to Kishi-ko, a taxi company in Osaka, and in July, Miraito. The newmo group now owns over 600 taxi vehicles and employs more than 1,000 people.
In July, they launched a Japanese version of ride-sharing in Osaka, and in August, began a vehicle leasing service for ride-share drivers. In September, they established "newmo Karuizawa Miyota" as their second base after Osaka.
At Miraito, they have strengthened management control and promoted DX initiatives, implementing groupware across all offices to visualize management indicators and introducing automated roll calls and partial automation of radio dispatch requests. In driver recruitment, key to improving profitability, digital tool implementation has increased applications 1.4 times year-over-year, and the job offer rate doubled from July to September, showing results just three months after joining the newmo group. They plan active investment in universal design vehicles and fleet expansion.
Regarding the Series A Extension
In this round, in addition to existing investors, regional financial institution-affiliated VCs and others joined as new investors, attracted by newmo's mission, successful post-M&A PMI progress in the taxi business expansion, and growth potential through synergies across taxi, ride-share, and FinTech businesses. Moving forward, they will accelerate nationwide expansion, partnerships/M&A with taxi operators, product development, and recruitment in collaboration with investors.
Series A Investors
ANRI / Axiom Asia Private Capital / B Dash Ventures / Bonds Investment Group / Coral Capital / DCM Ventures / DIMENSION / Eight Roads Ventures Japan / Globis Capital Partners / GMO VenturePartners / Headline Asia / HIRAC FUND / MPower Partners Fund / NOBUNAGA Capital Village / SBI Investment / SMBC Venture Capital / Spiral Capital / W fund / X&KSK / Global Brain / Keio Innovation Initiative (KII) / Shizuoka Capital / JAFCO Group / Nanto Capital Partners / Japan Industrial Partners / Mizuho Capital / Mitsubishi UFJ Innovation Partners
Establishment of new companies in Nagoya and Okinawa
Using the newly raised funds, newmo has established "newmo Tokai" in Nagoya and "newmo Okinawa" in Okinawa to expand into major regions nationwide.
newmo plans to launch a taxi dispatch app in certain areas of Osaka by year-end. In addition to their existing bases in Osaka and Karuizawa Miyota, they will promote the expansion of their taxi dispatch app and affiliated vehicles in Nagoya and Okinawa. They will also pursue taxi operations and partnerships with other taxi operators to understand regional taxi business characteristics.
Nagoya City is the third most populous government-designated city after Osaka, and Aichi Prefecture has the fourth-largest taxi market in Japan. Besides being home to many historic companies supporting Japanese industry, Aichi Prefecture has launched the "Aichi-Startup Strategy," opening "STATION Ai," Japan's largest open innovation facility, in Nagoya City in October, raising expectations for startup creation. newmo will establish a base within "STATION Ai" in anticipation of future expansion in the Tokai region.
Okinawa is highly popular as a tourist destination, with tourist numbers exceeding 8.53 million in FY2023, setting a record for domestic visitors. However, with limited public transportation and taxi driver numbers halving from 10,041 to 5,246 over the past 12 years, convenience remains low for both residents and tourists. Additionally, with the lifting of taxi entry regulations on Okinawa's main island in October this year enabling new entries and fleet expansion, newmo aims to provide new transportation options to improve regional convenience.
The new companies in Nagoya and Okinawa will aim to solve regional transportation challenges by providing locally-oriented services that are safe, secure, and comfortable to use while leveraging digital technology.