Cairo: After a subsidiary of the Kingdom's Public Investment Fund committed to investing in a number of venture capital vehicles, the startup scene in Saudi Arabia received a significant boost.

An undisclosed sum will be invested by PIF's Jada Fund of Funds Co. in Bahrain-based Investcorp's $500 million Saudi pre-IPO growth fund.

The investment vehicle's sole focus is on providing pre-IPO support to a broad range of Saudi Arabian businesses.

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The growth fund, which was established last year, aims to invest in a diverse portfolio of quickly expanding startups that want to go public.

Bandr Al-Homaly, CEO of Jada Fund of Funds Co., stated that one of the company's main objectives is to support the expansion of the regional private equity ecosystem. "We anticipate that Investcorp's Saudi Pre-IPO Growth Fund will have a significant impact in supporting businesses throughout the Kingdom that have strong growth trajectories and the potential to energise the larger community of small and medium-sized businesses.

A $100 million pre-IPO funding round for TruKKer, a Saudi Arabian trucking marketplace with over 45,000 trucks on its platform, was led by Investcorp in August of last year.

"Jada's commitment to Investcorp Saudi Pre-IPO Fund marks the start of a long-term strategic partnership, as Investcorp continues to grow its assets under management across multiple asset classes in Saudi Arabia," said Yasser Bajsair, the head of Investcorp Saudi.

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The government's initiatives have largely been responsible for the notable growth and transformation of Saudi Arabia's startup investment landscape in recent years.

PIF has set aside a sizeable sum of money to invest in promising startups, fostering their development and growth.

Jada also took part in a joint Saudi Arabian-South Korean fund that invested in startups from both nations.

The joint fund is covered by an agreement between South Korea and Saudi Arabia for investment cooperation and startup support that was signed during Crown Prince Mohammed Bin Salman's visit to the nation in November of last year.

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It was initially started with a $10 million injection into a $150 million fund that already existed and in which Saudi Arabia is a significant investor. Wednesday saw the raising of an additional $160 million with the help of Saudi Venture Investment and Jada, according to Wamda.

Jada, a $1.07 billion fund that was established in late 2019, focuses on investments in startups, venture capital funds, and private equity funds.