Hico Capital invests $4 million in farming machinery start-up

Industry

Published: 01 Jul. 2022, 16:45 Updated: 01 Jul. 2022, 17:49

Hico Capital invests $4 million in farming machinery start-up

Avatars of Samuel Kim, managing director of Hico Capital, left, and Craig Rupp, Sabanto CEO, pose for a photo during an online signing ceremony held in a virtual space on Meta. SK networks' U.S. investment firm Hico Captial is investing $4 million in Sabanto. [SK NETWORKS]

SK networks is investing $4 million in a U.S. farming machinery start-up.

SK networks said Friday that it will participate in a funding round for Sabanto, an agriculture technology company based in Chicago, Illinois, through Hico Capital. Hico Capital, established in 2020, is SK networks’ U.S. investment subsidiary based in Silicon Valley, California.

The total funding for Sabanto amounts to $17 million, including $4 million from SK networks, and will be used for product development.

Founded in 2018, Sabanto is developing a self-driving system for farming tractors. The autonomous driving system will be compatible with any brand or model of tractor, and therefore can automate even conventional tractors, according to SK networks.

Sabanto has been running test operations for its autonomous driving system products with the U.S. Air Force since last year and plans to sign a supply deal in the latter half of this year. The company will soon begin selling its service products to farmers as well, said SK networks.

SK networks cited the promising projection for the global agriculture technology sector and Sabanto’s technological competitiveness as the reasons for the investment decision.

“Agriculture automation technology is one of the fastest growing sectors in the United States,” said an SK networks spokesperson. “Sabanto’s automation technology will boost not only the efficiency of tractors, but also the sustainability of the farming industry.”

The global agriculture technology market is estimated to expand 18 percent on year to $12.4 billion in 2022, from $10.5 billion in 2021, and reach $14.9 billion by 2023, according to global market tracker Statista’s June report.

The spokesperson added that “the investment will encourage a start-up with competitive technology to grow, and also be an opportunity to seek strategic collaboration with SK networks’ business in the future.”

SK networks is a general trading company, 39.1 percent owned by its largest shareholder SK Inc., operating in a wide range of sectors varying from chemical products to telecommunication businesses to car rental services.

BY SHIN HA-NEE [shin.hanee@joongang.co.kr]