Agthia Group launches $54-mn corporate venture capital fund

Abu Dhabi-based diversified F&B company Agthia Group has launched a $54 million corporate venture capital fund designed to expand Agthia’s innovation capabilities and create mutual value with startups as the company aims to drive profitable growth in both new and existing markets.

Agthia Ventures seeks to build on Agthia’s four decades of experience, creating a programme to help the best and brightest entrepreneurs in food and related industries scale their operations and accelerate their product development and market adoption, through access to Agthia’s extensive industry knowledge, diverse distribution networks, technological infrastructure, research, development and marketing capabilities and established customer relationships.

Funded by Agthia and its parent company ADQ, an Abu Dhabi-based investment and holding company, Agthia Ventures will be managed together with Touchdown Ventures, specialising in establishing and operating bespoke CVC programs for blue-chip corporates.

The fund is stage-agnostic and will invest primarily in companies with clear product-market fit that are demonstrating revenue growth. Investments will focus on brands, categories and solutions across Agthia’s portfolio that are both complementary and adjacent to its business model. For example, in snacks and beverages. Target investment interests include premium and “better for you” snacks and beverages, functional water and hydration, alternative proteins, sustainability solutions in farming and packaging, e-commerce solutions for the food and beverage industry and other capability enhancements relevant to Agthia’s value chain.

“Innovation is the lifeblood of Agthia Group and plays a vital role in our strategic vision of being a leading food and beverage company in the MENA region and beyond by 2025. In conjunction with our internal R&D initiatives, our CVC will give us access to cutting-edge technologies and market insights from dynamic entrepreneurs helping to future-proof our growth and strengthening our ability to meet the evolving needs of consumers across multiple territories. In turn, Agthia will offer our product, market and distribution expertise to the entrepreneurs supported by the programme to help them succeed,” said Alan Smith, Chief Executive of Agthia Group.