South Africa-based supply chain services provider Imperial Logistics launched a $20m corporate venturing fund yesterday in partnership with venture capital firm Newtown Partners.
Newtown will manage the vehicle, which will operate independently to Imperial. The $20m represents an initial contribution to the fund, though neither firm has confirmed whether Imperial provided the entire amount.
Founded in 1975, Imperial provides supply chain, distribution and warehousing services for goods deliveries, predominantly in Africa and Europe.
The fund will make early-stage investments aligned with Imperial’s core business and geographic markets. Imperial is looking to uncover business models that produce strategic and financial returns over a five-to-10 year horizon.
The vehicle is expected to disclose its first portfolio company, a Nigeria-based startup, imminently and is in talks concerning prospective deals in Africa and Europe, a representative from Newtown told Ventureburn.
Mohammed Akoojee, chief executive of Imperial Logistics, said: “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 safe-guarding 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.”