Relocalize’s $2.3 Million Funding to Power Micro-Factories for Decarbonizing Food Supply Chain

Montreal-based cleantech startup Relocalize has received a $2.3 million CAD seed extension from Desjardins Capital and existing investor RGS Ice. This additional equity funding, combined with previous investments, brings Relocalize's seed round total to $5.8 million CAD. The funding will accelerate the development and deployment of its technology-driven micro-factories.

Relocalize, led by co-founder and CEO Wayne McIntyre, aims to address the significant greenhouse gas emissions associated with food transportation. By focusing on "hyper-local" production, the company aims to assist grocery retailers in reducing emissions and saving costs. The initial $3.5 million CAD was raised last fall from i4 Capital in Quebec City, Waterpoint Lane in Toronto, and RGS Ice in California.

Relocalize's autonomous micro-factories, housed inside shipping containers, utilize proprietary software and off-the-shelf hardware. These micro-factories are designed to be set up at existing grocery distribution centers, allowing for the manufacturing and packaging of food-related items to occur on-site, thus eliminating middle-mile transportation.

By co-locating production with distribution, Relocalize aims to eliminate the environmental and financial costs associated with transporting food. Wayne McIntyre, the CEO, emphasized the company's goal of reducing carbon emissions in the food system, stating, "Our vision is, wherever possible, don’t put [food] on a truck at all."

The recent $2.3 million CAD seed extension, finalized in April, brings Relocalize's total funding to $9.9 million. McIntyre confirmed that the extension was secured under the same terms as the initial seed round, although the company's valuation was not disclosed.

Initially targeting the packaged ice market, Relocalize identified logistics as the primary cost for manufacturers in the beverage and ice sectors. McIntyre highlighted the ice market's appeal due to its fragmented nature and identified inefficiencies, making it an easier entry point for Relocalize compared to the highly competitive beverage industry.

Relocalize's CEO highlighted the challenges within the ice market, including geographic monopolies and high costs associated with transportation and carbon emissions. Despite initial considerations by retailers to produce their own ice, the complexities of packaged ice production deterred them.

Focusing on the southern US market, particularly Florida, Relocalize aims to address the critical need for ice, especially during natural disasters like hurricanes. By decentralizing ice production through a network of micro-factories, the startup aims to help retailers mitigate risks and ensure continuity of supply during emergencies.

The successful trial of a micro-factory prototype in Jacksonville, Florida, in collaboration with Southeastern Grocers, demonstrates Relocalize's potential to produce packaged ice for local supermarkets, laying the groundwork for further expansion and impact.

The additional funding will enable Relocalize to scale its proof-of-concept into a fully operational production system, with investments in research, development, and production engineering. By doubling its engineering team and aiming to deliver a full prototype by the end of 2024, Relocalize plans to expand its partnership with Southeastern Grocers and serve other large retailers across the US and Canada in the ice market.

McIntyre emphasized the market demand for Relocalize's solution, driven by its ability to produce packaged ice more affordably, efficiently, and sustainably compared to traditional supply chains. While the immediate focus is on ice, Relocalize sees potential applications of its technology in other food-related areas, with beverages being a likely next step. McIntyre hopes to inspire more companies to adopt hyper-local production methods and reduce the carbon footprint associated with food production processes.