Saudi Aramco’s investment arm, Wa’ed Ventures, is investing $14 million in Terra Drone Corp, a Japanese start-up that creates software for drones used in inspecting and monitoring pipes, tanks, and other confined spaces. This is the first investment made by the $200 million fund in East Asia.
Wa’ed Ventures is targeting new technologies that could bring new business opportunities to Saudi Arabia, which is seeking to diversify its revenue sources beyond oil.
The fund believes that Terra Drone’s investment will help to localise technological development in Saudi Arabia and aid in achieving the country’s goal of becoming a hub for advanced technologies.
Wa’ed Ventures, with a portfolio of over 50 companies, is part of Saudi Arabia’s national effort to increase investments in technology. Aramco, the parent company of Wa’ed Ventures, also owns another investment arm called Aramco Ventures, which handles larger funds including the $1 billion Prosperity7 fund.
Recently, the Saudi Public Investment Fund has also increased its stake in gaming company Nintendo and made a significant investment in South Korea’s Kakao Entertainment. Terra Drone Corp plans to use the investment to establish an office in Saudi Arabia and assist in inspecting Saudi Aramco’s oil and gas plants and tanks.
The company also intends to hire 100 employees in the country within the next two to three years. Terra Drone was founded in 2016 as an affiliate of electric motorcycle manufacturer Terra Motors Corp and currently has offices in the Netherlands, Belgium and Indonesia.
“We are extremely keen to expand our business to the Middle East,” Seki said in an interview. “This investment places us on the map as one of the world’s top drone companies, something we needed to launch us into the global market.” Drones are used in a wide array of situations: military attacks, aerial surveillance, image and video mapping, search and rescue, parcel delivery, oil rigs and power line monitoring and precision farming.
