Tesco has joined forces with global retailers to put 125 million US dollars (£99 million) worth of investment into firms that are transforming the grocery sector and making it fit for the future.
The supermarket giant said the collaborative grocery venture fund – W23 Global – would look to support start-ups and scale-ups that are using technology to shake up the industry.
Tesco said it will contribute 25 million dollars (£20 million) over five years into the most innovative companies.
The fund also has the support of retailers including Woolworths Group, which has operations in Australia and New Zealand; Canada’s Empire Company; US and European giant Ahold Delhaize; and Africa’s Shoprite.
Each firm is an equal investor and partner in the fund, and their bosses will sit on the investment committee.
W23 Global is looking for firms that are harnessing technology to benefit shoppers by making their experiences in store and online faster, more personalised and connected.
They may also be addressing the grocery sector’s biggest sustainability challenges including reducing emissions and waste reduction, packing innovation, transparency from brands about products, and healthy eating.
The fund is run by Ingrid Maes, who currently heads up Woolworth’s corporate venture, W23 Australia.
Tesco’s chief executive, Ken Murphy, said: “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.”
Ms Maes said the fund will work with its investors to “identify common unaddressed challenges” and the entrepreneurs with innovative solutions.