Doosan Mobility Innovation (DMI) has announced on March 29th that it had secured approximately 27 billion won worth of investment from IDG Capital, Korea Investment Partners, and DS Asset Management in recognition of its growth potential in the hydrogen mobility business. The funds will be mainly invested in developing logistics cargo drones with hydrogen fuel cell technology.
Also Read: MVG and Anritsu Announce Support for IEEE 802.11ax 6-GHz-Band (Wi-Fi 6E) OTA Measurements
DMI has issued 260,383 shares of Redeemable Convertible Preferred Stock (RCPS)* at 103,693 won per share. After the increase in capital, Doosan Corporation-the parent company-‘s stake in DMI is expected to decrease from 100% to about 86.96%. In the end, DMI will be recognized for its market value of about 210 million assuming a 100% stake.
* Redeemable Convertible Preferred Stock (RCPS): preferred stock that can be repaid in cash or converted into common stock upon maturity
By securing the investment, DMI has proved its technology in the hydrogen fuel cell mobility sector and its future growth potential.
DMI plans to spend the acquired funds on strengthening its product line-ups, enhancing global capabilities, attracting top talent, and developing the next generation water-cooled fuel cells crucial for larger and heavier mobility such as logistics drone. Already, DMI is participating in the national project to develop the logistics and cargo drone with 10 to 50kg payload. The project aims to complete the commercialization after 2025, which is the general period when logistics drones are expected to be on full-scale.
“The success of this investment implies that ultra-light fuel cell market possesses high growth potential and future value. DMI will expand its product line-up through the development of its original technology, diversify the fuel cell mobility business by actively venturing into global market and lead the field of industrial drones.” Said Doosoon Lee, the CEO of Doosan Mobility Innovation.
DMI, a leader of the industrial drone market, showed tangible results last year such as sales to military troops, development of gas pipeline inspection solution, and the successful launch of wind-resistant model DS30W.
DMI’s hydrogen drone is suitable for reconnaissance, surveillance, and monitoring as it can stay airborne for more than 2 hours and has little noise or vibration. With these strengths, DMI built special task force for defense sector last year to preoccupy the military market, which accounts for the largest portion of the industrial drone market. DMI has also participated in governmental projects such as rapid trial acquisition project with DAPA (Defense Acquisition Program Administration), outstanding commercial goods project with Ministry of National Defense and combat test project with Republic of Korea Army, striving to develop military solutions.