Global venture fund to pump R2.2bn into grocery retail startups, and SA is on its radar

Retail is set to be revamped on a global scale with the launch of a venture capital fund backed by five grocery retailers, including South Africa's Shoprite Group.

The W23 Global fund will finance innovative small businesses in the retail space, with an investment of over R2 billion ($125m) over the next five years.

Along with Shoprite (Africa), it is backed by Ahold Delhaize (US, Europe, Indonesia), Tesco (UK, ROI, Europe), the Woolworths Group (Australia, New Zealand), and Empire (Canada).

'We invest in start-ups and scale-ups deploying technology to transform retail and create a better planet', says W23 Global.

Motheo Khoaripe (in for Bruce Whitfield) interviews Ingrid Maes, the Fund's CEO and Chief Investment Officer.

With the advancements in retail and particularly in technology, it's hard for a single retailer to keep abreast of everything going on across the globe, Maes says.

So the idea for W23 really came from a place of a win-win for all parties involved, she explains.

"It stems from the vision that by collaborating, we could tap into the best innovations across the world that would help us create a better experience for our customers, and be better for our planet."

"The fund was deliberately set up as an equal partnership, because it's important that everyone sitting around the table had an equal weight and an equal voice in explaining what innovation was necessary to drive their business."

Ingrid Maes, CEO and CIO - W23

The Fund is looking at two big thematics - retail innovation and sustainability.

Innovation in the broader sense involves things like logistics, customer experience, e-commerce and fintech.

Maes says the sustainability component is all about emission reduction, renewable energy usage, waste management and sustainable packaging.

Biodiversity and conservation of natural capital also slot into this category.

What is W23 looking for in terms of startups to invest in?

Broadly speaking, anything that could improve the retail space, she says.

Important criteria include the use of technology, and the possibility of scalability.

"It's important to remain open-minded. In our context, we are really about advancing innovation for retail... "

"Many startups would benefit from being given access to global scale. If, as a founder, you think you have a proposition or an innovation that is technology-driven, and that can be globally scalable... reach out to us and we'll take a look at it."

Ingrid Maes, CEO and CIO - W23

W23 was set up as a global fund because they do not believe the best ideas come from a particular region, Maes notes.

She says that through her conversations with the Shoprite team, it's apparent that there's a thriving innovation startup community in Africa, and South Africa.

"I'm really looking forward to connecting and engaging with that community to see how we could help them... and maybe bring some of the capital to grow their vision and help them scale."

Ingrid Maes, CEO and CIO - W23