The Migros Group is restructuring its innovation dev...

The Migros Group is restructuring its innovation development

migros

The Federation of Migros Cooperatives (FMC) intends to transfer Sparrow Ventures’ start-up holdings to its Corporate Finance division. The objective is for innovations to continue to be developed and implemented in a targeted manner within the various divisions of the Migros Group.

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Sparrow Ventures was founded in 2018 to develop and promote innovations for the Migros Group; it was designed to adhere to a defined investment budget and clear goals. Its work focuses on two areas of activity: firstly, “venture building”, which builds up the company’s own businesses. The second pillar is “growth equity”, where Sparrow Ventures makes targeted investments in external start-up companies, takes a stake in them and also supports these young enterprises in an advisory capacity. Several promising new start-ups have emerged in recent years. Overall, however, the goals set have unfortunately not been achieved to the desired extent, nor do the earnings anticipated in the future justify further investment, especially in the field of venture-building. Instead, Migros intends to continue the targeted development and implementation of innovations in its core business within its regular corporate divisions.

Following a comprehensive analysis of the prospects of future success, the Board of Directors of the Federation of Migros Cooperatives (FMC) therefore decided on Thursday (26 October 2023) not to continue financing Sparrow Ventures’ venture-building activities going forward.

Regrettably, current plans suggest that it will probably not be possible to avoid downsizing the workforce. A consultation process will be launched with the employees affected.

Migros intends to transfer the start-up investments of Sparrow Ventures within FMC to the Corporate Finance division. Migros is looking for optimal future solutions for its own ventures on an individual basis.

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