Saudi Aramco’s venture capital arm invests in AI start-up Tenderd

Tenderd is backed by top investors such as Y Combinator and tech billionaire Peter Thiel

Waed Ventures supports the start-up ecosystem in Saudi Arabia by investing in local tech-based start-ups. Reuters

Saudi Aramco's venture capital arm Waed Ventures has invested in Tenderd, a start-up that specialises in artificial intelligence technologies.

The company’s platform offers AI-generated insights to clients that helps increase efficiency while lowering carbon emissions, especially in heavy industries such as construction and logistics.

“Our investment in Tenderd reflects our commitment to addressing sustainability challenges facing the industrial sector and providing solutions to decarbonise their operations,” said Fahad Alidi, managing director at Waed Ventures.

The value of the deal was not disclosed.

Tenderd is backed by top investors, including Y Combinator, tech billionaire Peter Thiel, Beco Capital and Dynamo Ventures.

The size of the global ClimateTech market is expected to reach $20.34 billion this year before soaring to $182.54 billion by 2033, growing about 25 per cent every year, according to Future Market Insights.

Investment in renewable energy needs to double to more than $4 trillion by the end of the decade to meet the net-zero emissions target by 2050, the International Energy Agency said in its World Energy Outlook last year.

The agency's Stated Policies Scenario, which is based on the latest policy settings worldwide, expects clean energy investment to rise to slightly more than $2 trillion by 2030.

“With Waed Ventures' investment, we will be able to evolve industrial operations and lead the charge towards a greener, more sustainable future,” said Arjun Mohan, Tenderd's chief executive.

“Companies can leverage the power of our technology, to help them take the right steps towards increasing their operational intelligence and reducing their environmental footprint.”

Established in 2013, Waed Ventures is a $500 million venture capital firm that promotes economic diversification and new business growth in Saudi Arabia by investing in high-growth tech start-ups across multiple sectors. It manages a portfolio of more than 50 start-ups.

Start-ups across the Middle East, Africa, Pakistan and Turkey raised $7.2 billion through 1,473 deals last year, despite macroeconomic and geopolitical uncertainty, according to a January report by data platform Magnitt.

The funding value reduced by 2 per cent annually and was driven by a decrease in the value of late-stage mega deals, the report found.

FinTech led both funding and number of deals in the Middle East, Africa, Pakistan and Turkey region, Magnitt data found. The sector's funding reached $2.25 billion across 351 deals in 2022.