African- and European-focused logistics provider, Imperial, today announced a R315 million ($20 million) fund targeted at disruptive start-ups in the logistics industry.
Imperial, which has partnered with venture capital firm Newtown Partners to launch the corporate venture capital (CVC) fund, says the fund will identify, invest in and nurture disruptive, innovative technology start-ups that present high-growth potential in the global supply chain and logistics technology stack.
Mohammed Akoojee, CEO of Imperial, says: “Imperial operates in an environment that is constantly exposed to disruptors and one where innovation is critical. Partnering with Newtown Partners on this innovation fund helps position us ahead of future competitors, enabling a strategic response to emerging technologies and business models.
“With this fund, we are embracing the disruption taking place in the market by safeguarding the organisation against future risk. It is about leveraging innovation so that we ‒ alongside our clients ‒ can not only survive but thrive well into the future.”
In a statement issued today, the company says to maintain its position as a major industry player, Imperial required an entrepreneurial partner that not only specialises in investing in early-stage start-ups, but one that also has strong emerging market knowledge, access to the Silicon Valley network and thought leadership, and a deep understanding of what these start-up businesses require to succeed.
Furthermore, it says as an early-stage venture capital firm, Newtown Partners will support Imperial’s strategic investment in the key areas set to disrupt its business in the next five to 10 years.
“This programme will contribute to the long-term success of the organisation by identifying and leveraging start-ups deploying emerging technologies and business models in key geographical and logistics service areas,” says Vinny Lingham, co-founder and general partner of Newtown Partners.
The statement notes that as the fund manager, Newtown Partners has adopted a hands-on approach that will see it work closely with portfolio start-up companies the fund invests in.
“Additionally, the innovation fund is operationally separate from Imperial, ensuring portfolio start-ups are not hamstrung by corporate red tape, while still being able to unlock the synergistic benefits of having Imperial as an investor and market access provider.
“As is typical in corporate venture capital, the fund has the objective of generating attractive financial returns, together with a strategic underpinning relevant to the core business of Imperial,” read the statement.
Llew Claasen, co-founder and managing partner of Newtown Partners, says: “By adopting a pragmatic approach to disruptive innovation, we are well-positioned to identify how Imperial’s business will change over the next few years, and enable them to not just weather the inevitable disruption to their industry, but leverage this change for competitive advantage.
“We are excited to have been chosen as their partner, and see significant potential for this fund, its start-ups and Imperial, as we leverage our global start-up experience and network to augment the considerable industry knowledge inside Imperial.”
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