Kerman Motor Launches Iran’s First Automotive CVC Fund with $1 Billion Toman Capital

Khodrocar - Kerman Motor has officially launched Iran’s first Corporate Venture Capital (CVC) Research and Technology Fund dedicated to the automotive industry. Backed by a registered capital of 1 trillion tomans (10 trillion rials), the fund is designed to finance innovative technologies, invest in knowledge-based companies, and accelerate the development of next-generation automotive solutions.**

The newly established fund represents a strategic shift in Kerman Motor’s long-term innovation strategy, focusing on technology development, startup investment, and strengthening the domestic automotive supply chain through collaboration with Iran’s growing innovation ecosystem.

Strategic investment in automotive innovation

In recent years, major global automakers have increasingly expanded their investments beyond vehicle manufacturing, allocating significant resources to startups and emerging technology companies.

Corporate Venture Capital (CVC) funds have become one of the industry's most effective tools for identifying disruptive technologies, supporting innovation, and transforming research into commercial products. Global automotive manufacturers such as Toyota, BMW, Mercedes-Benz, Hyundai, and General Motors have all established CVC arms to accelerate technological advancement and secure future competitiveness.

Following this global trend, Kerman Motor has become the first Iranian automaker to establish a dedicated automotive CVC fund.

Supporting startups and knowledge-based companies

The primary mission of the new fund is to provide financial and strategic support for startups, knowledge-based companies, and innovative technology projects.

In addition to funding, the initiative aims to facilitate the commercialization of emerging technologies while strengthening the capabilities of Iran's domestic automotive industry.

According to **Ali Jabal-Ameli**, Chief Executive Officer of Kerman Motor's CVC Research and Technology Fund, the organization is the country's first venture capital fund dedicated exclusively to the automotive sector, with registered capital totaling **1 trillion tomans**.

"Our core mission is to promote technological development, invest in knowledge-based companies, and finance strategic projects through collaboration with the national innovation ecosystem and the effective mobilization of financial resources," he said.

Building the foundation despite challenging conditions

Jabal-Ameli noted that much of the fund's establishment coincided with a challenging period for the country, including the recent **40-day regional conflict**. Despite these circumstances, the organization successfully completed its regulatory approvals, established its governance structure, developed investment frameworks, and implemented risk management procedures.

The fund has also initiated cooperation with universities, the Vice Presidency for Science, Technology and Knowledge-Based Economy, the Iran National Innovation Fund, and several technology and research centers across the country.

Multiple investment models introduced

To maximize flexibility, the fund has designed several investment mechanisms, including:

* Direct investment
* Co-investment partnerships
* The proprietary **"Hamafza" (Synergy)** investment model

These financing tools are intended to channel capital toward emerging technologies, strategic automotive projects, and the continued development of Kerman Motor's supplier network.

Ten technology projects already under evaluation

According to the fund's CEO, **ten technology projects** with a combined estimated value exceeding **10 trillion rials** are currently undergoing technical and financial assessment.

Once the evaluation process is completed, the selected projects will move into the investment and implementation phase.

 Strengthening Iran's automotive ecosystem

Kerman Motor believes the establishment of the CVC fund will play a significant role in directing investment toward productive industries while supporting domestic innovation.

By investing in advanced technologies and knowledge-based businesses, the company expects to reduce production costs, decrease dependence on imported technologies, improve supply chain resilience, create new employment opportunities for highly skilled professionals, and contribute to the sustainable development of Iran's automotive industry.

What is a Corporate Venture Capital (CVC) fund?

Corporate Venture Capital (CVC) funds are investment arms established by large corporations to invest in startups and emerging businesses that align with their long-term strategic objectives.

Unlike traditional venture capital firms, which primarily focus on financial returns, CVC funds pursue both financial and strategic value. In addition to capital, they provide startups with access to industrial expertise, distribution networks, customers, engineering resources, and commercial infrastructure.

Industry research has consistently shown that startups backed by CVC funds generally experience lower failure rates, improved access to future funding rounds, and higher long-term valuations compared with companies that rely solely on conventional venture capital financing.

 Outlook

The launch of Kerman Motor's Corporate Venture Capital Fund marks an important milestone for Iran's automotive industry. As global competition increasingly shifts toward software, electrification, artificial intelligence, and smart mobility solutions, the company's decision to invest directly in innovation and emerging technologies could strengthen its long-term competitiveness while accelerating the modernization of Iran's automotive ecosystem.