Terra drone today said it raised $14 million in Series C funding Wa’ed Venturesthe venture capital branch of Saudi Aramcomarking the VC firm’s first investment in Asia.
The Japan-based company, which builds drone software, hardware and unmanned aerial traffic management software, said the new capital brings the total amount raised since its inception in 2016 to $97 million. It declined to comment on the post-payment valuation. According to sources familiar with the situation, the startup was valued at more than $200 million in March last year when Terra Drone closed a series B of $70 million.
The move corresponds to Saudi Arabia’s “Vision 2030” plan, outlining goals to reduce the country’s dependence on hydrocarbons and promote the use of drones in services. For example, fossil fuel companies in Saudi Arabia will use Terra Drone technology for inspection services. Drones are supposed to detect things like oil leaks. Saudi Aramco is the world’s largest oil producer and plans to increase fossil fuel production in the coming years despite the scientific consensus that such activities wreak havoc on the Earth’s climate.
Terra Drone CEO Teppei Seki told londonbusinessblog.com that the startup participated in a Saudi Aramco nationwide drone program held last year for Saudi Vision 2030.
Saudis $500 billion Neom projecta 25,600 km2 urban construction project on the Red Sea and Gulf of Aqaba, will also utilize Unifly’s unmanned traffic solutions for drone services. Terra Drone is the largest shareholder in Unifly, which will work for the Neom project to commercialize drones, aiming to complete the first phase of the project by 2025.
With the latest funding, Terra Drone plans to establish a new subsidiary, Terra Drone Arabia, wholly owned by Terra Drone, and further promote drone surveys in the region. In addition, the company plans further international penetration in the Middle East and North Africa (MENA) through its new office in Saudi Arabia.
Terra Drone currently offers its drone and UAM solutions in 10 countries. Denmark uses Terra Drone’s Unmanned Aircraft Traffic Management (UTM) in Danish health drones and the Health Drone Project to transport blood and medicines. The Terra Drone UT inspection drone is certified as a ship inspection by the International Shipping Registersaid the Japan-based startup.
Since the last fundraiser, sales of the subsidiaries have grown by more than 50%, the company said.
Terra Drone CEO Toru Tokushige founded Terra Drone in 2016 to develop drone software, such as global air traffic management, to avoid collisions by enabling safe and efficient drone and urban air mobility operations.
“Supported by Terra Drone’s global track record, our investment represents a compelling effort to build the UAM ecosystem in the Kingdom, one that circles a sustainable economy,” said Wa’ed Ventures General Manager Fahad Alidi. “We envision rapid adoption of UAM technology as an emerging tech vertical in the region, and Terra Drone is well positioned to localize their innovation across the region, starting with the Kingdom.”