Abu Dhabi's International Holding Company (IHC) has acquired a stake in US-based flying car manufacturer Archer. The company plans to launch flying taxi services in the UAE in partnership with local entities early next year. Archer announced it has secured $430 million (Dh1.578 billion) from four investors, including 2PointZero, a subsidiary of IHC, Stellantis, United Airlines, and Wellington Management.
IHC, listed on the Abu Dhabi Securities Exchange, is owned by Sheikh Tahnoon bin Zayed Al Nahyan, Deputy Ruler of Abu Dhabi and National Security Advisor. "We've raised another $430 million in strategic capital, bringing our total raised to nearly $2 billion and solidifying Archer's balance sheet as one of the largest in the sector," said Nikhil Goel, Archer's chief commercial officer. Goel expressed excitement about partnering with Sheikh Tahnoon and IHC but did not reveal the exact investment amount from IHC.
International Holding Company, a diversified conglomerate, reported a net profit of Dh12.3 billion for the first half of 2024, a 18% increase from the previous year. Revenue surged 46% year-on-year to Dh41.7 billion. Archer, along with its UAE partners, plans to launch flying taxi operations in Abu Dhabi next year and establish a manufacturing facility for flying cars in the emirate.
On December 6, Archer Aviation signed a collaboration agreement with key UAE and Abu Dhabi entities to launch the first commercial eVTOL flight. The agreement, signed under the Smart and Autonomous Systems Council (SASC), aims to make Archer the first manufacturer of electric vertical-take-off-and-landing aircraft in the MENA region and the first to operate commercial flying taxis in the UAE.
Following the latest fundraising round, Archer announced it is now "well-positioned with one of the sector's leading balance sheets with no near-term financing needs." "The Archer team has deep expertise in the rapid design, engineering, and production of next-generation vertical-lift aircraft," said Adam Goldstein, founder and CEO of Archer. He added that the new capital will accelerate the development and deployment of advanced aerospace technologies.
Source link: https://www.khaleejtimes.com
