World’s first cargo drone receives $40 million funding, targets UAE HQ

Dronamics, a middle-mile drone company, has raised $40 million in funding, some of which will be used to expand operations in the Middle East.

Founders Factory, Speedinvest, Eleven Capital, and most recently the Strategic Development Fund (SDF), the investment arm of the Tawazun Council, Abu Dhabi, UAE, provided the pre-Series A funding. These investors are from 12 different countries and came from venture capital funds and angel investors.

Dronamics said the SDF venture capital division’s investment is a step towards the creation of a UAE-based joint venture that will expand Dronamics capacity and support the future establishment of 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..

Svilen Rangelov, co-Founder and chief executive at Dronamics, said: “The investment from SDF, Founders Factory, Speedinvest, and Eleven Capital 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 Chief Executive of SDF, added: “SDF looks at investing in aerospace and mobility companies that can improve the 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.”

The $40m is in addition to the €2.5m grant Dronamics was awarded by the European Commission under the selective deep-tech European Innovation Council (EIC) Accelerator, and the EIC’s material commitment to support Dronamics’ Series A round with another €12.5m in equity investment. The raised funds will support Dronamics’ strategy to bring cargo drone solutions to more people and businesses around the world.