Abu Dhabi's wealth fund invests in SoftBank-backed tech startup

[ABU DHABI] Mubadala Investment led a US$700 million funding round for a technology startup backed by SoftBank Group, as the Abu Dhabi wealth fund diversifies its portfolio away from oil.

The fund said on Wednesday it invested in Reef Technology, a startup that manages hubs in parking lots used for food delivery and other services such as Covid-19 testing. It was joined by SoftBank Vision Fund, Oaktree, UBS AM and Target Global, Mubadala said on Twitter.

Miami-based Reef was exploring a capital raise to fund its expansion, people familiar with the matter told Bloomberg earlier this month. The firm was valued at US$1 billion when SoftBank acquired a stake in 2018.

Mubadala, which manages US$232 billion in assets, is among Gulf sovereign funds plowing their oil and natural gas wealth into technology to lessen their reliance on crude and help diversify their economies.

The fund has said over the past few years that it's looking to boost its investments in technology. It bought a stake of about 5 per cent in Silver Lake in September and announced plans to invest US$2 billion in a technology fund run by the private equity firm.

Earlier this year, Mubadala joined regional and global investors that poured billions of dollars into the telecommunications and digital services business controlled by Indian billionaire Mukesh Ambani. The fund will also invest US$234 million in German pharmaceutical company Evotec.

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