Segi Fresh to invest in Mandalay's agritech for Malaysia

Mandalay Venture Partners has announced that Malaysia's Segi Fresh will invest in its agritech portfolio, embedding Australian agricultural technology across Malaysia for the first time.

This new partnership marks Mandalay Venture Partners' first strategic investor and is expected to enhance fresh food supply chains in Malaysia. Segi Fresh, one of Malaysia's prominent supermarket chains, will invest in Mandalay's Fund I, enabling the integration of various agritech solutions within its operations. Through this collaboration, Segi Fresh aims to drive efficiency, improve sustainability, and elevate food quality for consumers throughout the ASEAN region.

Mark Gustowski, Managing Partner of Mandalay Venture Partners, stated that the agreement highlights a mutual commitment to utilise technology in fresh food supply chains to reduce waste, optimise logistics, and boost sustainability. "We couldn't be more delighted to have the support of the Segi Fresh group," he said. "Not only does the group bring more than 30 years of detailed expertise in fresh food retail and supply chain logistics, they also provide an onramp for companies in the Mandalay portfolio to seamlessly build markets across Malaysia and the ASEAN region."

One notable company poised to benefit from this partnership is TomKat Kool Paks, a Queensland-based startup known for developing Near Field Communication (NFC)-enabled thermal containers intended for cold chain transportation. This technology will help Segi Fresh to minimise its use of polystyrene and ice, aligning with its goal to reduce environmental impact and enhance supply chain efficiency.

Kath/Tom Long, Co-founder of TomKat Kool Paks, remarked that the partnership with Segi Fresh offers a substantial opportunity to extend their technology regionally. "Our mission has always been to provide a sustainable, high-performance alternative to traditional cold chain packaging," said Long. "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."

Segi Fresh Director Mr Tan Hon Yik emphasised the investment underscores the company's recognition of technology's critical role in revolutionising the food industry. "With more than 100 stores across Malaysia, with plans for more than 200 stores by 2025, Segi Fresh works with the whole of the fresh produce supply chain, from growers to point of sale," he explained. "Identifying and embedding leading technology solutions has the ability to create higher yield for our supply chain, provide efficiencies for our own operations while scouting for the latest tech globally. The Mandalay team has a track record of excellence with a deep knowledge of the ASEAN region. We are excited to work with the team across this fund and with the startups invested in."

The bilateral food import and export relationship between Australia and Malaysia exceeded AUD $3.4 billion in 2022, reflecting a robust trade dynamic. This collaboration is expected to not only strengthen economic ties but also encourage innovation-led synergy between the two countries.

Mark Gustowski highlighted the importance of this investment in fostering such cross-border cooperation and innovation. "With our mission to sustainably feed the world's growing population, we couldn't think of a better partner than Segi Fresh to fulfil our mission," he commented.

Mandalay Venture Partners has established eight investments across various agrifood tech domains, including livestock, veterinary, food processing, future foods, supply chain logistics, greenhouse technology, and artificial intelligence.