Abu Dhabi-based Agthia Group launches $54m CVC fund

Image: Agthia Group

Agthia Group, the Abu Dhabi-based diversified food and beverage company, has launched Agthia Ventures, a corporate venture capital fund (CVC) to create mutual value with startups in both new and existing markets.

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, a firms which establishes and operates bespoke CVC programmes for blue-chip corporates, with over 100 completed venture investments to date.

Agthia Ventures to help entrepreneurs scale operations

Agthia Ventures will create a programme to help entrepreneurs in food and related industries scale their operations and accelerate their product development and market adoption, through access to the group’s industry knowledge, diverse distribution networks, technological infrastructure, research, development and marketing capabilities, and established customer relationships.

 Utilising Touchdown’s network of startups, venture capital relationships, incubators and accelerators, Agthia Ventures aims to identify attractive early-stage, seed and growth investment opportunities, within relevant and target geographies.

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, value chain technology, and ingredient technology.

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. 

Alan Smith, chief executive of Agthia Group, commented: “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.”

Scott Lenet, Touchdown president and co-founder noted: “We believe entrepreneurs globally will be impressed by the collaborative, supportive culture of Agthia’s team and their capabilities to help a startup grow. Whether through providing expertise and distribution locally in the MENA region, or by working collaboratively in North American and European markets to leverage Agthia’s expertise, the team have a lot to offer to food and beverage innovators.”