Abu Dhabi’s SDF invests in Dronamics for potential JV to explore MENA region
Dronamics, the cargo drone airline with license to operate in Europe, has raised a total of $40 million in pre-Series A funding from venture capital funds and angel investors from 12 countries including Strategic Development Fund (SDF), the investment arm of the Tawazun Council, Abu Dhabi.
SDF venture capital division’s investment in Dronamics is a step in the creation of a UAE-based joint venture that will expand its capacity and support the future establishment of Dronamics’ operations in the UAE as one of the main hubs for the Middle East and North Africa region. SDF shall, through the establishment of a manufacturing and operations JV, become a main partner in the UAE-based joint venture with additional significant investment.
Svilen Rangelov, co-Founder and CEO at Dronamics said: “The investment is a strong validation of our goal to bring our cargo drone solution to more people and businesses around the world. Their confidence in Dronamics confirms the strength of our business model and we are excited to continue growing and achieving success with the support of our investment partners.”
Abdulla Naser Al Jaabari, Managing Director and CEO of SDF said: “SDF looks at investing in aerospace and mobility companies that can improve movement of humans and cargo autonomously in a sustainable and cost effective manner. When it comes to Dronamics, their economics are very promising and potential users of Dronamics would benefit from quick and efficient cargo deliveries. As one of Dronamics’ latest strategic investors, SDF will be working closely to support the ongoing growth of the company through the UAE and globally.”
The $40 million is in addition to the €2.5 million ($2.7 million) grant Dronamics was awarded by the European Commission under the selective deep-tech European Innovation Council (EIC) Accelerator program, and the EIC’s material commitment to support Dronamics’ Series A round with another €12.5 million ($13.45 million) in equity investment.
Аs a developer and operator of large, long-range drones built specifically for cargo, Dronamics claims that its flagship Black Swan is able to carry 350 kg at a distance of up to 2,500 km up to 80 percent faster, 50 percent cheaper and with up to 60 percent lower emissions than alternative modes of transport, including airfreight. This enables same-day shipping over very long distances for a variety of industries.