Business

Brazilian road equipment firm Randon launches venture capital

The firm's main aim is to seek innovation in the long-haul sector

Random Group's origins are in the truck parts segment, but it also has a service arm. Photo: Shutterstock
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  • Its first round of investment will offer $690,000 and may include up to 12 tech companies;
  • TruckHelp, a startup, offers a platform to connect auto parts and auto repair shops with truck drivers and long haul trucking firms.

Randon Group, a Brazilian company whose origins are in the automotive sector and the manufacturing of equipment for heavy trucks and buses, is seeking to expand its services area and gain a foothold into automotive technology through investing. The group is launching a new venture-capital arm, Randon Ventures, that will look for opportunities in startups.

At first the move may seem unexpected, but Randon is not a novice in finance: its services division already includes a bank and a consortium administrator. Daniel Randon, CEO of the group, told Valor that their first round of investment will offer BRL 3 million ($690,000) and may include up to 12 tech companies that present solutions to the parent company.

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Each startup may receive up to $69,000. The first selection made by Randon Venture is TruckHelp, a platform of solutions and services for truck drivers and long-haul trucking firms, connecting them with auto parts and auto repair shops. 

Daniel Ely, director of planning in Randon, told Valor that the new division will be initially focused in sectors complementary to the company’s core business, such as “logistics, financial services, insurance and mobility”. According to him, Randon Ventures will also contribute with training, mentoring and support for new innovation ecosystems.

The goal of the group is to keep up to date in digital innovations for the mobility business, including electric and autonomous vehicles, but also to increase its service offerings, which in 2018 amounted to only 4% of total revenues.