Saudi Arabia’s startup landscape has received a significant push after a subsidiary of the Kingdom’s Public Investment Fund committed to investing in several venture capital vehicles.
PIF’s Jada Fund of Funds Co. plans to invest an undisclosed amount in Bahrain-based Investcorp’s $500 million Saudi pre-initial public offering growth fund.
The investment vehicle is exclusively focused on supporting a diverse range of companies based in Saudi Arabia during their pre-IPO stage.
Launched last year, the growth fund aims to invest in a diversified portfolio of fast-growing startups looking to go public.
“One of Jada’s primary goals is to support the growth of the local private equity ecosystem, and we look forward to see Investcorp’s Saudi Pre-IPO Growth Fund playing an impactful role in supporting companies across the Kingdom that have strong growth trajectories and the ability to invigorate the wider small and medium enterprise community,” said Bandr Al-Homaly, CEO of Jada Fund of Funds Co.
Last August, Investcorp led a $100 million pre-IPO funding round in TruKKer, a Saudi-based trucking marketplace with over 45,000 trucks on its platform.
“Jada’s commitment to Investcorp Saudi Pre-IPO Fund marks the start of a long-term strategic partnership, as Investcorp continues to grow its assets under management across multiple asset classes in Saudi Arabia,” said Yasser Bajsair, head of Investcorp Saudi Arabia.
Saudi Arabia’s startup investment landscape has experienced remarkable growth and transformation in recent years, mainly driven by government initiatives.
PIF has allocated significant funds to invest in promising startups, fueling their growth and expansion.
Jada has also participated in a joint fund between Saudi Arabia and South Korea to invest in startups from both countries.
The joint fund falls under an agreement for investment cooperation and startup support between South Korea and Saudi Arabia, which was signed during a visit by Crown Prince Mohammed Bin Salman to the country in November last year.—AN
