TLDR:
- Emasa Ventures, a $20m startup investment subsidiary of Chilean auto parts manufacturer Emasa, has ceased operations.
- The closure was due to a business restructuring from December 2023 to early 2024, leading to the termination of the CVC group and a return to the parent company’s core business.
The Chilean auto parts manufacturer Emasa has closed down its $20m corporate venture capital arm, Emasa Ventures, after three years of operation. The subsidiary was launched in 2021 as part of Emasa’s plan to transition 30% of its revenue base to zero-emission energy sources by 2030. Emasa Ventures aimed to focus on electromobility, starting with digitalizing auto parts sales and later developing electric vehicle (EV) technology and services. Led by former head of investments, Sebastián Díaz Muzio, the unit targeted startups in the EV, connected vehicle, shared mobility, and digital platform sectors, with investment sizes ranging from $500,000 to $2m. However, despite making one investment in Jooycar, a usage-based car insurance platform, Emasa Ventures has now ceased operations.
The closure of Emasa Ventures was part of a larger business restructuring that took place between December 2023 and early 2024, resulting in the termination of the CVC group. This restructuring also led to the departure of Emasa’s former general manager, Víctor Ide Benner, and the Emasa Ventures executives. The company has returned to its core business of selling automotive parts, citing less favorable outcomes in the second half of 2023 as a reason for the decisions made. While electromobility remains relevant to Emasa’s long-term strategy, the company acknowledged that a dedicated team would be required for this transformation. Emasa’s general manager, Roberto Jara Araya, mentioned that although innovation was not being completely discarded, the company needed to be cautious as they were not adequately prepared to develop it at the moment.
In a similar move earlier in the year, Mexican Coca-Cola bottler Arca Continental shut down its strategic investment unit, AC Ventures. While the closure of Emasa Ventures marks the end of its startup investment activities, the company remains open to the idea of innovation and the potential of electromobility in the future.
