SOUTH AFRICA – Five of the world’s largest grocery retailers, including South Africa’s Shoprite Group, have united to establish a venture capital fund dedicated to investing in technology-driven start-ups and scale-ups.
The purpose behind this investment initiative is to foster innovation in areas such as packaging, product traceability, transparency, and sustainability, focusing on reducing emissions and waste.
Known as W23, the fund will be equally financed by the five major retailers. Apart from Shoprite, the other key investors include Tesco (representing the UK, Ireland, and Europe), Woolworths Group (operating in Australia and New Zealand), Ahold Delhaize (with a presence in the US, Europe, and Indonesia), and Empire Company Limited/Sobeys (based in Canada).
Together, they are committed to investing over $125 million (approximately R23 billion) over the next five years.
The CEOs of these retail giants will collectively serve on the fund’s investment committee, leveraging their expertise to identify challenges and select the most promising entrepreneurs capable of delivering innovative solutions.
Pieter Engelbrecht, CEO of Shoprite Group, emphasized the unique trading circumstances in South Africa compared to other fund investors.
He stated, “[We] need to discover more affordable solutions to sustain our customers’ everyday livelihoods.”
Ingrid Maes, CEO and Chief Investment Officer of the fund, highlighted the advantage of having the five retail CEOs directly involved in the investment committee, enabling rapid testing and development of ideas.
She emphasized, “Our goal is to provide our portfolio companies with accelerated paths to global expansion, avoiding the constraints of a venture fund led by a single strategic investor.”
Portfolio companies of the fund will have the flexibility to engage with any customer, whether a W23 global partner or otherwise, on mutually agreed terms.
Shoprite is Africa’s leading fast-moving consumer goods retailer, operating 3,543 stores across 10 countries.
Tesco, with 4,400 stores in the UK, Ireland, and Europe, and Woolworths Group, boasting over 1,400 outlets across New Zealand and Australia, are also key players.
Ahold Delhaize, serving millions of customers weekly in the US, Europe, and Indonesia, and Empire Company, headquartered in Nova Scotia, Canada, round out this influential consortium.
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