Tesco teams up with grocery giants to launch $125 million VC fund
Tesco has teamed up with five global grocery leaders to launch a $125 million venture capital fund with the aim of accelerating innovation.
The supermarket has joined forces with Ahold Delhaize, Woolworths Group, Sobeys and Shoprite on W23 Global which will invest over five years in the world’s most innovative start-ups and scale-ups with the potential to transform grocery retail and address the sector’s sustainability challenges.
In a statement, Tesco said the move will benefit consumers by driving faster, more personalised and connected experiences across stores and online. It will also aim to create more efficient grocery value chains and address grocery’s biggest sustainability issues from farm to household.
Tesco group chief executive Ken Murphy said: “We are excited to be collaborating with four other leading grocery retailers in this new investment fund. We are passionate about seeking out the best retail innovations and finding ways to make everything we do sustainable, and this partnership allows us to do that on a truly global scale.”
The fund is being led by chief executive and chief investment officer Ingrid Maes who currently leads Australian grocery leader Woolworths Group’s innovation fund, W23 Australia.
Maes said: “W23 Global is a pioneering international VC fund with a uniquely powerful proposition for both our investors and portfolio companies. At a time when innovation is reshaping retail and value chains across the economy, we aim to offer our investors incomparable access to transformative innovation in grocery and sustainability across the globe.”
Each retailer is an equal funder and partner in W23 Global with their chief executives sitting on the investment committee. Tesco will contribute $25 million over five years.
