Genesis Private Equity (GPE) has made an undisclosed capital investment in New Zealand-based precision ag company, TracMap, in exchange for a 25 percent stake in the company. Under the terms of the investment, John Rolleston and Garry Haskett will assume roles on the TracMap Board of Directors as GPE appointees.
Dunedin-based TracMap uses a system of GPS-enabled, in-vehicle hardware options that are linked to cloud-based management software to create a system that is specifically designed to raise the efficiency of ground-spreading and spraying for agricultural, viticultural, and horticultural applications. The system, which the company states on its website, is used by 65 percent of New Zealand’s farmers and contractors, has been proven to increase agricultural application efficiency by 20 percent – giving a farmer 20 percent more coverage from the same amount of product. Since its launch, the company has expanded its services to farmers and contractors growing grapes, nuts, fruits, and vegetables in global markets including the U.S., Australia, and South Africa.
“We are pleased with our progress in Australia, and are excited to have Genesis on board which enables us to invest in the structures and personnel required to build upon our presence in both Australia and California. This new capital will allow us to leverage off our market leading position in several sectors and to transform the business,” said David Glen, chief executive, TracMap.
Kieran O’Hagan, Executive Director of GPE notes that an advantage for precision ag technologies is the ability to not be tied into established geographical tech hubs, enabling the company to fully engage with its clients from its base in New Zealand.
“The application of world-class technology to improve the efficiency and the sustainability of crop production, in both large and smaller scale agriculture, is experiencing massive growth worldwide,” said O’Hagan.
“This is one area where New Zealand has some significant advantages over many other high-technology hubs – given our own pastoral background and our kiwi ingenuity combined with great technical ability.”
“In this sector, distance is not a disadvantage, and TracMap is able to service a global market from its Otago base.”
Founded in 2015 by Kieran O’Hagan, Nathan Mills and five additional shareholders, GPE was launched with the goal of investing in the latent potential of New Zealand-based businesses through the commitment of capital and its ability to provide support through its commercial experience and its networks.
Targeting small to medium-sized New Zealand businesses valued between $2 million and $15 million, the firm’s first fund totaled $11.875 million committed by 28 wholesale investors from across the country. This investment in TracMap is one of two initial investments being made by the firm, which states in a company release that the second investment will be announced in the near future.
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Lynda Kiernan