The autonomous car solutions startup Pony.ai has received a $100 million investment from the Neom Investment Fund, a recently established division of Neom, the megacity in Saudi Arabia.
Neom said in a statement on Wednesday that as part of the investment, a joint venture will be established between the California-based Pony.ai and Neom to develop, produce, and supply autonomous, or self-driving, vehicles and infrastructure.
It added that all of these will be utilized in Neom and other significant Mena markets.
According to data from start-up tracker Crunchbase, Pony.ai has now received $1.3 billion in funding overall thanks to the NIF’s investment, making it a unicorn (a start-up valued at more than $1 billion).
The investment supports Neom’s objectives to provide hyperconnected and sustainable transportation inside the $500 billion development, according to Majid Mufti, CEO of the NIF.
The autonomous driving technology from Pony.ai is now available, and we’re thrilled to be able to use it in Neom soon, the spokesperson stated.
The most recent development in Pony.ai’s regional expansion is its arrival in Neom. It just become a member of the Smart and Autonomous Vehicles Industry cluster in Abu Dhabi, where it will be able to test-drive its newest technology at the Yas Island testing zone.
Separately on Wednesday, the NIF said that, following the completion of an investment in a series A funding round for the US company, it has grown to become the single-largest shareholder in electric seaglider ground effect craft producer Regent.
The investment’s value was not disclosed by Regent or the NIF. According to Crunchbase data, Regent has raised $87 million in five fundraising rounds.
According to Terry Wong, Neom’s executive director of land mobility, Regent is anticipated to “provide a fresh approach to coastal transportation in Neom, both passenger and freight, connecting key destinations along 468km of coastline, and reflect our belief in zero-carbon technologies.”
Among the businesses in the initial round of investments made by the NIF to launch the fund’s activities were Pony.ai and Regent.
The other businesses include game software developer Animoca Brands, aquaculture start-up BlueNalu, and aerospace manufacturer Boom Technology.
The NIF stated that more information regarding the investments in these businesses is anticipated soon.
As civilization moves toward the next generation of transportation systems, self-driving cars are becoming more and more popular because of the cutting-edge technologies that enable them to function even with little assistance from humans.
They are regarded as a significant player in the market for “smart mobility,” which combines data-driven solutions with cutting-edge technology to build effective, sustainable, and user-centered transportation systems.
The NIF was introduced on Tuesday, with the creation of jobs in the Red Sea development and Neom’s advancement being two of its objectives.
With a “clear focus on pioneering growth companies and next-generation industries,” it will invest globally through mergers and acquisitions and venture capital in technological start-ups, with the goal of developing 14 priority areas.
Neom plays a significant role in Saudi Arabia’s Vision 2030 strategy, a major economic diversification initiative that places a strong emphasis on technology.
The NIF will concentrate on creating investments for the private sector and will make direct investments to create solutions that will be tested and developed at Neom before being exported to other countries.
It stated that it will create collaborations and joint ventures with global corporations, institutional investors, and Neom entrepreneurs.
Additionally, in order to “safeguard returns for the shareholder and investors through portfolio synergies and will underpin Neom’s long-term financial sustainability,” the fund will take on the role of portfolio manager for Neom’s sector assets and firms.
Neom and innovators, as well as institutional investors, will benefit from “de-risking opportunities for them to participate in creating core global growth businesses and a thriving economy” in the mega-city according to the NIF’s approach.