Saudi-backed Vision Fund invests in Chinese truck-hailing firm

SoftBank’s Vision Fund, backed by Saudi Arabia's sovereign wealth fund, is among a group of investors pumping in $1.9 billion into Chinese truck hailing service platform Manbang, Reuters reported.

The company, formally known as Full Truck Alliance Group, said the investment was led by SoftBank’s Vision Fund, it said a statement.

Other investors include state-backed private equity firm China Reform Fund and Hong Kong-based investment firm Ward Ferry.

The investment will help Manbang develop new business areas and markets, the company said in a statement. Around 5.2 million out of China’s 7 million trunk line trucks are members of the Full Truck Alliance.

Described as China’s “Uber for trucks,” Manbang allows shippers to connect with truck drivers.

The Softbank Vision Fund counts Saudi Arabia’s Public Investment Fund (PIF), and UAE's Mubadala Investment Co. among its key investors. It is also supported by tech giants Apple, Foxconnn, Qualcomm and Sharp.

Since its inception in May 2017, the fund has raised up to $98 billion, making it one of the largest technology investment funds ever. It has announced plans to acquire minority and majority stakes in private and public firms focused on emerging technology to established entities.

Under Saudi Arabia’s Vision 2030 initiative, the Kingdom aims to increase PIF’s assets from SAR 600 billion to over SAR 7 trillion.