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Saudi Wa’ed Ventures Leads $14 Mln Bridge Round for Japanese Terra Drone

A drone of the Terra Drone. (Asharq Al-Awsat)
A drone of the Terra Drone. (Asharq Al-Awsat)
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Saudi Wa’ed Ventures Leads $14 Mln Bridge Round for Japanese Terra Drone

A drone of the Terra Drone. (Asharq Al-Awsat)
A drone of the Terra Drone. (Asharq Al-Awsat)

Terra Drone, the Japan-based leading drone service provider, has announced closing a $14 million bridge round led by Wa’ed Ventures, the Kingdom-focused venture capital arm of Aramco.

Through this investment, Terra Drone plans to open a new subsidiary in the Kingdom of Saudi Arabia to localize its drone services as well as to continue to serve the global autonomous vehicles market expected to grow to $1.5 trillion by 2040, as projected by Morgan Stanley.

Terra Drone has been in business since 2016, with a mission to evolve the world from the sky, said Toru Tokushige, founder and CEO of Terra Drone Corporation.

“Six years later, we are now approaching a future where drones and aerial vehicles will no longer be a novelty,” he said.

“We have built up a solid track record both domestically and internationally up to the point that Terra Drone has grown to be recognized as the top drone service provider in the world. Saudi Aramco's investment in Terra Drone through its VC arm Wa’ed Ventures is another example of the global recognition for our achievements, which raises the expectations for our team as we continue to push forward and lead Terra Drone to the forefront of the global innovation track,” added Tokushige.

Fahad Alidi, Managing Director at Wa’ed Ventures, said: “Our investment represents our commitment towards building the UAM ecosystem in the Kingdom, one that circles around a sustainable economy."

“Terra Drone is well-positioned to localize their innovation across the region, starting with the Kingdom,” added Alidi.

Wa’ed Ventures’ investment comes as additional support to the $83 million already raised in previous funding rounds by Terra Drone.

Earlier rounds included participation from Mitsui & Co. Ltd, SBI Investment Co. Ltd, Tokyu Land Corporation, and Seika Corporations; some of the largest institutional investors in the Asian market.

The startup has served more than 10 countries worldwide since its founding, providing drone hardware and cloud-based software in over 1,000 projects, with an aim to create a “drone and air mobility-based society”.

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Oil Prices Steady as Markets Weigh Demand against US Inventories

FILE - Pump jacks extract oil from beneath the ground in North Dakota, May 19, 2021. (AP Photo/Matthew Brown, File)
FILE - Pump jacks extract oil from beneath the ground in North Dakota, May 19, 2021. (AP Photo/Matthew Brown, File)
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Oil Prices Steady as Markets Weigh Demand against US Inventories

FILE - Pump jacks extract oil from beneath the ground in North Dakota, May 19, 2021. (AP Photo/Matthew Brown, File)
FILE - Pump jacks extract oil from beneath the ground in North Dakota, May 19, 2021. (AP Photo/Matthew Brown, File)

Oil prices were little changed on Thursday as investors weighed firm winter fuel demand expectations against large US fuel inventories and macroeconomic concerns.

Brent crude futures were down 3 cents at $76.13 a barrel by 1003 GMT. US West Texas Intermediate crude futures dipped 10 cents to $73.22.

Both benchmarks fell more than 1% on Wednesday as a stronger dollar and a bigger than expected rise in US fuel stockpiles pressured prices.

"The oil market is still grappling with opposite forces - seasonal demand to support the bulls and macro data that supports a stronger US dollar in the medium term ... that can put a ceiling to prevent the bulls from advancing further," said OANDA senior market analyst Kelvin Wong.

JPMorgan analysts expect oil demand for January to expand by 1.4 million barrels per day (bpd) year on year to 101.4 million bpd, primarily driven by increased use of heating fuels in the Northern Hemisphere.

"Global oil demand is expected to remain strong throughout January, fuelled by colder than normal winter conditions that are boosting heating fuel consumption, as well as an earlier onset of travel activities in China for the Lunar New Year holidays," the analysts said.

The market structure in Brent futures is also indicating that traders are becoming more concerned about supply tightening at the same time demand is increasing.

The premium of the front-month Brent contract over the six-month contract reached its widest since August on Wednesday. A widening of this backwardation, when futures for prompt delivery are higher than for later delivery, typically indicates that supply is declining or demand is increasing.

Nevertheless, official Energy Information Administration (EIA) data showed rising gasoline and distillates stockpiles in the United States last week.

The dollar strengthened further on Thursday, underpinned by rising Treasury yields ahead of US President-elect Donald Trump's entrance into the White House on Jan. 20.

Looking ahead, WTI crude oil is expected to oscillate within a range of $67.55 to $77.95 into February as the market awaits more clarity on Trump's administration policies and fresh fiscal stimulus measures out of China, OANDA's Wong said.