Nevoya Secures $9.3M Funding as Electric Truck Fleet Matches Diesel Costs

Los Angeles-based Nevoya emerged from stealth mode last year with the bold mission of breaking the EV truck adoption barrier. The company’s progress caught the attention of investors, leading to a $9.3 million seed round to accelerate its growth.

Nevoya, a company that acquires electric trucks and provides them to shippers, has already secured business from 10 Fortune 500 companies. More impressively, it offers carrier services to these companies in California at cost parity with traditional diesel trucks, a remarkable feat amidst growing anti-EV sentiments.

Founder Sami Khan remains undeterred by the challenges, as he believes in the appeal of reducing carbon emissions for Fortune 500 companies. Leveraging AI, Nevoya optimizes trucking routes, matches loads with suitable trucks, and streamlines energy consumption. The company’s use of AI extends to managing charging schedules and battery usage, with the aim of automating 90% of trucking operations.

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Khan attests to the effectiveness of Nevoya’s automation in delivering information to drivers faster and with fewer errors. While AI enhances operations, it complements dispatchers rather than replacing them, allowing for better customer communication.

### The “go big” funding conundrum

Following a successful pre-seed round and traction in its electric trucking fleet, Khan faced a pivotal decision on how to scale Nevoya. Encouraged by investor Shawn Xu of Lowercarbon Capital, the company opted for a larger seed round, attracting investments from notable backers like Floating Point and LMNT Ventures.

The funding will support Nevoya’s expansion beyond California, including ventures in Texas. While this move promises increased revenue, Khan acknowledges the need for innovative solutions in new markets, such as leveraging existing charging infrastructure and investing in dedicated charging stations.

Embracing a competitive approach inspired by companies like Uber, Nevoya plans to hire general managers to oversee operations in different locations, fostering performance-driven growth. Xu’s initial caution in investing in Nevoya underscored the importance of proving cost parity with diesel trucks, a milestone that the company continues to strive towards.

Xu’s Vision for Nevoya

As Xu saw Nevoya progressing, he remembered saying to Khan: “What would it look like if you actually raised a lot more than you were expecting to raise?” The two spoke about using more artificial intelligence to optimize their fleet management, while also keeping an eye on an autonomous future (hence the inclusion of Applied Intuition’s Younis in the round).

Success and Growth

“They’re getting lower cost per mile. They’re getting lower maintenance costs. The AI orchestration for efficiency on the route optimization is starting to bear fruit,” he said. “So yeah, we ended up raising a much larger round that ended up being even more oversubscribed than we had expected. And now we’re off to the races.”