Dubai's Road and Transport Authority has been in active talks with the company, assessing the feasibility of a project that would deploy train-like capsules that float on air and travel at high speeds through a low-pressure tube.
Branson's company in September announced 10 finalist cities for its first installation, which it expects to build by 2021.
"This investment provides Virgin Hyperloop One with a very robust financial platform for 2018", chief executive Rob Lloyd said in a statement. The company also tested a new airlock created to transition pods between atmospheric and vacuum conditions.
"All components of the system were successfully tested including the airlock, highly efficient electric motor, advanced controls and power electronics, custom magnetic levitation and guidance, pod suspension, and the vacuum", the startup wrote in a press release.
Ultra-low drag allows the pod to "glide at airline speeds for long distances", the company said.
"The recent investment by our partners Caspian Venture Capital and DP World sets up the company to pursue opportunities in key markets in the Middle East, Europe, and Russian Federation as it develops game-changing and innovative passenger and cargo ground transport systems". Hyperloop One's co-founders, executive chairman Shervin Pishevar and president of engineering Josh Giegel, have previously worked at Virgin Galactic, Branson's space company.More news: Net Neutrality Repealed, Substratum Price Sees New All Time High
In October, we wrote about Sir Richard Branson's Virgin Group has invested an undisclosed amount in Hyperloop One, the frontrunner of a number of companies competing to bring Elon Musk's futuristic vision of a magnetically-propelled high-speed transport system to life.
If it comes to fruition, Hyperloop has the potential to revolutionize transportation around the world.
In October, Virgin Hyperloop One received US$85m from several investors, including Branson's Virgin Group (resulting in the company's name change from Hyperloop One).
Virgin Hyperloop One hit about 240 miles per hour with a travel circuit that magnetically levitates a pod and sends it through a tube, according to a statement Monday.
On Monday Virgin Hyperloop One announced a new record for its prototype pod-387kph (or 240mph).