How SmartGrid Arabia Raised 2.5M SAR After Our Program
The story of how a Cohort 3 startup went from prototype to funded company transforming Saudi Arabia's energy infrastructure.
When Ahmed Al-Rashid walked into our offices in January 2024, he had a bold vision: transform how Saudi Arabia manages its power grid using artificial intelligence. Six months later, SmartGrid Arabia closed a 2.5M SAR funding round and is now deploying their solution across three Saudi cities.
This is their story.
The Beginning
Ahmed had spent 15 years in the energy sector, watching grids struggle to handle the increasing complexity of modern power demands. He knew there had to be a better way.
“Traditional grid management is reactive,” Ahmed explains. “We wait for problems to happen, then fix them. With AI, we can predict issues before they occur and optimize distribution in real-time.”
The Neo City Invest Journey
SmartGrid Arabia joined our Cohort 3 in January 2024. Here’s how we helped them scale:
Week 1-4: Validation & Refinement
Our mentors helped Ahmed’s team validate their technology with real utility companies. Key insights:
- The initial product was too complex for operators to use
- Pricing model needed adjustment for Saudi market
- Integration with existing systems was a major pain point
Week 5-8: Pilot Program
Through our partnership network, we connected SmartGrid Arabia with a regional utility company for a pilot program. The results were impressive:
- 23% reduction in grid downtime
- 15% improvement in energy efficiency
- 40% faster issue resolution
Week 9-12: Investment Readiness
With pilot data in hand, we worked with Ahmed on investor positioning:
“Neo City Invest didn’t just give us money—they gave us credibility. Their introductions to investors and government entities opened doors we couldn’t have opened on our own.”
The Funding Round
SmartGrid Arabia’s Demo Day presentation caught the attention of several investors. Within weeks, they had multiple term sheets and ultimately closed a 2.5M SAR seed round led by a major Saudi VC.
What’s Next
Today, SmartGrid Arabia is:
- Deploying in three Saudi cities
- Hiring a team of 15 engineers
- In discussions with utilities in UAE and Egypt
- Planning their Series A for 2025
Lessons for Founders
Ahmed shares three key lessons from his journey:
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Start with the problem, not the technology: “We had to learn that customers don’t care about AI—they care about results.”
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Partnerships are everything: “Our success came from the relationships Neo City Invest helped us build.”
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Be patient but persistent: “Saudi Arabia moves fast when it decides to move. You need to be ready.”
Ready to write your own success story? Apply to our Flagship Program today.