Schneider’s $500+ million VC Fund
Manufacturers are using CVC to attack distributors from all sides.
Hi ,
This week we take a look at Schneider Electric, a leading electrical supplier, and their venture endeavors.
The Applico Team
Schneider Electric, a global leader in the energy management and automation industry, is making significant technology investments to disrupt traditional B2B distributors. Through its venture capital arm, SE Ventures, Schneider Electric is investing in companies that are revolutionizing the way building materials are delivered and procured, as well as streamlining the rebate management process for manufacturers.
RenoRun Inc.
Most Recent Round: $144mm Series B - December 2021
Founded: 2016
One of Schneider Electric's recent investments is in RenoRun, a Montreal-based company that brings the convenience of on-demand delivery to the building materials industry. By offering same-day delivery of over 150 SKUs in electrical supplies, RenoRun is making it easier for contractors to get the materials they need, when they need them - it's like Instacart for construction materials to the jobsite. The company has grown at least 3x each year since its inception in 2017 and currently operates in Boston and Chicago; however, there are signs of RenoRun’s growth not keeping up with past expectations. In an interview in Feb’ 22, the CEO said they were also expanding to markets like Philadelphia and DC; however, their current website only lists Boston and Chicago in the US. By partnering with RenoRun, we see Schneider leveraging a new, digital channel to sell direct to contractors - using distributors as a warehouse; and Schneider sets the price and makes the sale to the customer in partnership with RenoRun.