Tesco has become one of five leading global grocery retailers to establish a pioneering collaborative venture fund to accelerate innovation across retail.
The W23 Global venture fund, which is equally funded by partners including Tesco, Ahold Delhaize, Woolworths Group, Empire Company Limited/ Sobeys and Shoprite, seeks to invest in innovative start-ups and scale-ups that deploy technology to enhance customer experiences in-store and online.
It also looks to increase productivity across the grocery value chain and address the sector’s sustainability challenges from biodiversity in agriculture to sustainable packaging.
Subscribe to Grocery Gazette for free
Sign up here to get the latest grocery and food news each morning
The CEO’s of each global grocery partner will sit on the investment committee, with Tesco contributing £19.8m ($25m) over five years.
Tesco group CEO 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.”
W23 Global CEO and chief investment officer Ingrid Maes said: “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.”
She added that the venture fund will work with investors to “identify common unaddressed challenges and identify entrepreneurs best placed to innovate new solutions”.
“Our ambition is to offer our portfolio companies faster pathways to global scale, without being exposed to a venture fund anchored by a single strategic investor. With five of the world’s leading grocery CEOs sitting on our investment committee and access to our broader ecosystem, our founders can test and develop their ideas quickly based on an accelerated understanding of retailers’ needs.”
