Target Information

We are excited to announce our investment in RideLogix's £500k pre-seed round. RideLogix addresses a pressing issue faced by retailers globally: stock-outs, which lead to lost sales and customer frustration. The traditional solution of overstocking, aimed at preventing stock-outs, inadvertently creates a significant waste of resources, resulting in excess inventory, higher transportation costs, and an extensive environmental footprint. According to estimates, overstocking accounts for approximately $163 billion in inventory waste worldwide each year.

RideLogix offers an innovative solution by enabling retailers to analyze their inventory holdings and predict when products will run out of stock. Their comprehensive system efficiently rebalances stock from nearby stores or hubs using electric cargo bikes. This approach not only ensures customer satisfaction by providing access to desired products but also significantly reduces the carbon footprint associated with traditional logistics, while mitigating waste from overproduction and unnecessary deliveries.

Industry Overview in the UK

The market for RideLogix's solutions is extensive, particularly given the current landscape of retail in the UK. Despite the rapid growth of online shopping, in-store retail remains a dominant channel, representing over 70% of retail sales in the UK as of 2023. Urban retailers, facing increasing operational costs and the pressure to optimize their supply chains, are seeking effective solutions to enhance their return on investment related to expensive urban real estate.

As urban areas expand and congestion escalates, the demand for innovative, eco-friendly logistics solutions will continue to rise. Retailers are not only looking to streamline their operations but also to demonstrate their commitment to sustainability amidst growing environmental concerns.

RideLogix has already shown a promising product-market fit with its initial customer and is currently scaling its offerings across London. With plans to branch out into additional cities and various retail sectors, including fashion, DIY, and groceries, the growth potential for RideLogix is substantial.

The increasing pressure on urban logistics, driven by velocity of sales and consumer expectations for immediate product availability, positions RideLogix strategically to capitalize on this trend. Their proactive approach to managing inventory challenges aligns perfectly with the evolving needs of modern retailers.

Rationale Behind the Deal

The rationale for this investment stems from the desire to support a company that addresses significant inefficiencies in the retail logistics space. With growing awareness about sustainability and resource optimization, RideLogix’s offering presents a timely solution that caters to both operational needs and environmental responsibility.

Investing in RideLogix provides an opportunity to be part of a solution that not only improves the efficiency of inventory management for retailers but also contributes positively to the environment by reducing emissions associated with traditional delivery methods.

Investor Information

This investment comes from our Spring 2024 Tech for Good programme, which is dedicated to supporting ventures creating impactful solutions in the technology space. The expertise of the RideLogix founders, Lili and Serhat Kyuchuk-Pakyuz, significantly influenced our decision. Having previously encountered Serhat's extensive background in supply chain operations at Amazon and Lili's experience in technology and consumer sectors, we recognized their potential to disrupt the retail logistics market effectively.

The founders have demonstrated exceptional execution capabilities in a short timeframe, impressing us with their ability to learn from feedback, iterate their product rapidly, and secure contracts with prominent retail brands. Their combined technical proficiency and strategic insights position them ideally to spearhead transformative change in this industry.

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From an expert perspective, this investment in RideLogix represents a compelling opportunity. The company is addressing critical pain points experienced by retailers and aligning its solutions with the global shift towards sustainable practices. As urban environments evolve, the need for efficient logistics that reduce carbon footprints will only grow, giving RideLogix a significant competitive edge.

Furthermore, as retailers increasingly prioritize sustainability alongside operational efficiency, RideLogix is well-placed to capture a larger share of the market. If they continue to successfully scale their business and deepen their relationships with clients, they can significantly influence the retail logistics landscape.

Given these factors, we believe that RideLogix not only has the potential for substantial returns on investment but also embodies the values of innovation and sustainability that are increasingly critical for success in today's market. We are eager to support the team as they expand their reach and bring their vision to fruition.

In conclusion, the investment in RideLogix is a strategic move aligned with emerging trends in retail logistics, and we are optimistic about their future growth and impact on the industry.

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