Bulgaria's Dronamics raises $40 mln ahead of Middle East expansion

The Strategic Development Fund (SDF), the investment arm of the UAE's Tawazun Council, participated in the pre-seed funding alongside early stage investors Founders Factory of the UK, Speedinvest of Austria and Bulgaria's Eleven Capital, Dronamics said in a press release. The fresh funds precede a planned Series A round.

The investment from SDF's venture capital division sets the ground for the creation of a UAE-based manufacturing and operations joint venture (JV) through which Dronamics will boost its capacity and establish operations in the UAE as a hub for the Middle East and North Africa region.

SDF will make a further unspecified, but "significant" investment to become the main partner in the JV, Dronamics added.

"SDF looks at investing in aerospace and mobility companies that can improve 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," SDF CEO and managing director Abdulla Naser Al Jaabari said.

The latest capital injection comes on top of a recent 2.5 million euro ($2.7 million) grant from the European Commission to help Dronamics develop and commercialise its cargo drone fleet in Europe.

Earlier this month, Dronamics secured a contract with Australian aerospace components manufacturer Quickstep Holdings for the production of the Bulgarian company's flagship Black Swan unmanned aircraft.

($ = 0.9397 euro)