Malaysian fresh food group Segi Fresh has invested an undisclosed amount in a fund managed by Australian agrifood tech venture capital firm Mandalay Venture Partners, according to an announcement.
The investment in Mandalay’s Fund I will allow Segi Fresh to adopt agritech solutions backed by the Brisbane-based venture firm into its fresh food supply chain, per the announcement.
Fund I is looking at raising A$35-40 million, with a maximum target of A$50 million, a source told DealStreetAsia. Mandalay has already made eight investments across agrifood tech verticals and plans to make a total of 20 deals.
According to the announcement, Segi Fresh and Mandalay’s partnership aims to improve supply-chain efficiencies, enhance sustainability, and boost food quality across Southeast Asia.
“We couldn’t be more delighted to have the support of the Segi Fresh group,” Mandalay Venture Partners managing partner Mark Gustowski said. “The group provides an onramp for companies in the Mandalay portfolio to seamlessly build markets across Malaysia and the ASEAN region.”
Queensland-based TomKat Kool Paks, one of Mandalay’s portfolio companies, is expected to benefit from the collaboration. The startup develops Near Field Communication (NFC)-enabled thermal containers for cold chain transportation, which Segi Fresh will integrate to reduce its reliance on polystyrene and ice, improving environmental sustainability and operational efficiency.
“By working with Segi Fresh, we’re not only reducing waste in the supply chain but also ensuring fresher, higher-quality food reaches consumers across Malaysia and beyond,” said TomKat co-founder Tom Long.
Segi Fresh, which operates over 100 stores in Malaysia with plans to expand to 200 outlets by 2025, sees the investment as a strategic move to modernise its fresh food operations, said director Tan Hon Yik.
“Identifying and embedding leading technology solutions can create higher yield for our supply chain and provide efficiencies for our own operations while scouting for the latest tech globally,” Tan said.
The partnership aligns with the strong trade relationship between Australia and Malaysia, where bilateral food imports and exports exceeded A$3.4 billion in 2022.
Last year, Mandalay Venture Partners announced that it roped in state-owned Queensland Investment Corporation (QIC) as an investor. Founded in 2020, Mandalay is led by three partners — Mark Gustowski, Philippe Ceulen, and Timothy Hui.
Mandalay hit a A$15-million first close for its debut agrifood and farm-tech fund for Asia in 2022.
