The new fund will invest in software, mobility services and sustainability.

Image courtesy of Scania

Scania, the Swedish truck and bus manufacturer, has formed a $190m venture capital fund to further bolster the industrial, technological and transport sectors.

The new fund, dubbed Scania Growth Capital II, will invest in startups focusing on software, mobility services and sustainability. 

Scania’s first venture capital fund, Scania Growth I Capital, founded in 2016, invested in nine companies including the Germany-based logistics company Sennder, which reached a unicorn ($1bn+) valuation when it raised $80m in a series D round in 2021.  The fund has also invested in electric vehicle battery developer Northvolt, which received $600m in a series B funding round in 2020, and H2 Green Steel, the Sweden-based green steel producer, which raised $105m in a series A round in 2021. 

“What we have learned is that it is essential for Scania to collaborate with smaller companies and initiatives that have the greatest potential to support our continued development and growth,” says Gustaf Sundell, executive vice president at Scania. “We have also seen that the venture businesses can benefit from our broad and deep industry knowledge.”

Scania Growth Capital is managed by East Hill Capital, a firm that will also oversee the management of the new fund.

Scania is a $24bn manufacturer of commercial vehicles, namely heavy lorries and buses. The company is listed on the Nasdaq Stockholm Exchange and is a subsidiary of the Germany-based automotive manufacturing conglomerate Volkswagen Group.