eWTP Arabia Capital, a venture capital fund backed by China’s Alibaba Group and Saudi Arabia’s Public Investment Fund (PIF) is reportedly close to raising $1 billion to invest in tech startups in China, India, Southeast Asia, and MENA, Bloomberg reported on Friday.
The fund, founded in 2019, has already raised $400 million and invested in 16 companies so far. Five of its portfolio companies are being considered for IPOs on the Saudi stock exchange and the US, its founding partner Jerry Li told Bloomberg.
According to a Bloomberg report, eWTP Arabia Capital will likely raise new funding every two years to fund a large pipeline of potential deals.
“We partner with entrepreneurs and work with them to realise their dream to build leading global businesses,” Li said in a post on its website.
eWTP Arabia Capital develops the digital ecosystem in emerging markets by enabling access to advanced technology and knowledge bases. Its focus includes digital infrastructure, cloud services, social media, consumer technologies, and e-commerce.
It also invests in startups in logistics, financial technologies, education tech, travel and tourism, industrials, healthcare, SaaS, IT services, and mobile technologies sectors.
The fund’s investments include Saudi Cloud Computing Company, the kingdom’s top provider of cloud services; J&T Logistics, which is now the fastest-growing logistics provider in the country; and Alibaba Cloud, the cloud computing division of Chinese internet giant Alibaba.
“When we first set up our base in MENA, Saudi Arabia is just opening its gate, as the country looks to transform from ‘an oil economy’ and to bring in technologies from the other side of the world, including China, where entrepreneurs and companies are seeking to expand globally,” Li earlier said.
PIF, one of eWTP Arabia’s backers, has pledged to spend $40 billion a year domestically through 2025 to help build new industries and create jobs.
In Asia, PIF recently increased its stake in Japan’s Nintendo Co Ltd to 6%, reflecting its growing exposure to the Japanese video gaming industry. It also plans to partner with Singapore sovereign wealth fund GIC to invest $785 million in South Korean entertainment company Kakao Entertainment.