Abu Dhabi's ADQ launches $300M fund for early-stage bets in India, Southeast Asia.

ADQ, the state-owned holding company for Abu Dhabi’s non-oil sectors, has launched a $300 million (1.1 billion dirhams) venture capital fund, which will look to make early stage investments across India and South-East Asia.

The Alpha Wave Incubation (AWI) Fund will be located at Abu Dhabi Global Market, the international financial centre in the United Arab Emirates’ capital, and will be managed by New York-based investment firm Falcon Edge Capital, according to a statement by ADQ on Wednesday.

Additionally, the AWI Fund will assist its portfolio companies in setting up their global or regional headquarters in Abu Dhabi’s Masdar City, which will allow them to utilise the digital infrastructure in place, along with “highly advanced regulatory frameworks” and other research and development initiatives.

“Alpha Wave Incubation Fund will further encourage Abu Dhabi’s culture of entrepreneurship and help to promote its emerging position as a global innovation hub, in line with the Ghadan 21 accelerator programme’s investment in Abu Dhabi’s economy, knowledge system and communities," Mohammed Hassan Al Suwaidi, chief executive of ADQ, said.

According to the statement, the AWI Fund will also provide its portfolio companies market access to the UAE and the broader Middle East and North Africa region.

Formerly known as Abu Dhabi Developmental Holding Company, ADQ is a public joint stock holding company that was formed in 2018, and manages a portfolio of over 90 companies, spanning 11 sectors, including healthcare, tourism and hospitality, logistics, manufacturing, utilities, media, agri-business and real estate, among others.

"With the launch of Alpha Wave Incubation Fund, we have the opportunity to invest in outstanding start-ups that will generate sustainable, long-term financial returns while also drawing young founders and teams to Abu Dhabi,” said Mayank Singhal, head of venture capital and technology at ADQ.

In February, ET reported citing sources that Falcon Edge Capital was raising a $300 million venture capital fund anchored by an undisclosed entity of the Government of Abu Dhabi and investors from the UAE, which will back startups with capabilities in artificial intelligence and machine learning.

Falcon Edge, co-founded by Navroz Udwadia, has been an active investor in India, historically placing growth and late-stage bets in Asia’s third-largest economy, including in home-grown ride-hailing major Ola, dockless scooter app Bounce, news platform DailyHunt, and managed real estate company Stanza Living, among others.

ET