A €4m investment in Ireland-based Brandtone, an emerging markets mobile marketing company, by the venture capital arm of agri-business company Syngenta has been as part of a strategic move by the corporate investor to engage in more innovative ways with farmers in China, India, South East Asia and Sub-Saharan Africa. Syngenta will commence work with Brandtone in 2014 to engage smallholders, taking advantage of mobile devices as the only universal media channel to encourage more effective and safer use of its products.
Unilever, which has invested in Brandtone since its inception, has committed further investment through its investment arm Unilever Ventures. The investment is to support international expansion of the company’s offerings and facilitate the development of the company’s products in direct consumer marketing, media delivery and Smartphone integration. Unilever has already signed a separate commercial deal with Brandtone to expand the partnership into a number of new markets including China, India, Indonesia and the US.
Verlinvest, Belgian family-owned, consumer-focused investment holding company whose shareholders are part of the AB-InBev control group, has also contributed significantly to the funding round, reflecting an increasing emphasis on digital branding within its portfolio. Both Verlinvest and Unilever will continue to be represented on the Brandtone board along with representatives from Syngenta Ventures.
Founded in 1995, Verlinvest currently manages around €700m of assets across multiple geographies.
Thanks to the deal, the company will extend its global reach, opening offices in New York and Jakarta early this year. Brandtone will use this funding to establish and grow its operations in the ten fastest growing markets, which will account for 75% of client revenue by the end of the decade. It is also set to make a major investment in its products and services to address increasing smartphone penetration, and the growth of financial and health services in these markets.
Robert Berendes, Syngenta’s Global Head of Business Development, said that the agri-business has invested in Brandtone so that it can reach “20 million smallholder farmers to help them increase their farming productivity by 50% without further depleting scarce land, water and energy resources”.
John Coombs, Chairman of Brandtone and Managing Director of Unilever Ventures, said: “When we first invested in Brandtone three years ago, the full potential of mobile in developing and emerging markets was only just being recognized. Now it is the vehicle for some of the most innovative marketing anywhere in the world. We are pleased to continue our support for Brandtone as it moves into this exciting new phase of its development.”
Founded in 2010, Brandtone has grown from one market into twelve, delivering campaigns for global brands including Unilever, PepsiCo, Kellogg’s and Mondelēz.