KUALA LUMPUR: Petroliam Nasional Bhd has invested in agriculture technology startup Braintree Technologies Sdn Bhd that develops artificial intelligence-driven robots for farm automation, often associated with smart farming.
The deal, which marks Petronas' first investment in venture capital (VC) space via unit Petronas Ventures, is expected to be completed in early July.
Petronas did not disclose the amount of investment in Braintree Technologies.
The national oil company had late last year set up Petronas Ventures with a US$350 million fund for direct investments in technology startups in Industry 4.0, advance materials and specialty chemicals, future of energy as well as access into new markets.
Braintree Technologies develops robotic devices and proprietary software that will provide agricultural total solutions as well as convert non-revenue generating, unattended agricultural land into high-value crop farms.
Petronas Ventures head Mohd Azli Ishak said the investment reflects the group's strategic intent to venture into the Malaysian startup ecosystem in scouting for breakthrough technologies that support its growth beyond the oil and gas business.
"We believe this investment in Braintree Technologies will establish the right ecosystem for a smart farming business model, capitalising on Petronas' strong knowledge in urea and fertiliser application and Braintree Technologies' AI and robotics technology."
The initiative is in line with Petronas' sustainability agenda and the United Nations' Sustainable Development Goals (SDGs) 8, 9 and 13, focusing on promoting sustainable economic growth, industry-innovation and climate action respectively.
Braintree Technologies chief executive officer Arif Makhdzir said: "When this company was first established, I noticed the gaps but also opportunities in the agricultural industry in Malaysia, where smart farming can help to increase farm productivity and yield, and the livelihood of farmers.
"Combining our technical experience in software development and agriculture knowledge, we hope to drive a change for Malaysia in this major industry."
He added that the team was selected to join the Petronas FutureTech Accelerator programme in 2019, and since then, it had sharpened Braintree Technologies' business model and attracted interest from several investors.