SINGAPORE -- Temasek Holdings, Singapore's state-backed investment group, and Swiss logistics company Kuehne + Nagel announced Thursday that they have established a $50 million fund to back innovative startups in the same sector.
The fund, administered by a joint venture called Reefknot Investments, will select between six and eight targets that specialize in advanced logistics technology, such as artificial intelligence and data-based supply chain management. The first recipient is expected to be announced shortly.
The financial support will address the growing demand to visualize and track deliveries in real time. Businesses are being pressed to adopt flexible supply chain strategies, especially against the backdrop of the U.S. trade war with China, said Marc Dragon, Reefknot's managing director.
In recent years, Temasek has expanded investment in unlisted growth startups, and the new fund is the latest step in that trajectory. Logistics is one of Singapore's core industries. Temasek owns a piece of PSA International, one of the world's largest port operators headquartered in the city-state.