US-based urban greenhouse developer and grower of sustainable produce Gotham Greens has raised $29 million in funding.
The investment – which will help finance the company’s expansion trajectory, widen distribution and enhance research and development – brings the total amount raised by the firm to $45 million.
The round was led by the investors, including the Silverman Group, along with a new investment from Creadev, a global private equity investment firm.
Gotham Greens co-founder and CEO Viraj Puri said: “This funding enables us to continue on our path of rapid growth that is providing consumers with fresher, better tasting, locally grown produce while transforming urban real estate and promoting sustainable agriculture.
“We’re inspired every day by the dedication and talent of our team to grow and purvey exceptionally high-quality, nutritious produce while contributing to the better food movement.”
Since its launch in 2011, Gotham Greens has grown from a single urban rooftop greenhouse in Brooklyn to a “multi-state indoor farming leader”.
It grows fresh produce in climate-controlled urban greenhouses in close proximity to retailers and food service providers. This is said to ensure year-round supply chain reliability, transparency and traceability.
The company currently owns and operates four production-scale facilities in New York and Chicago, totalling 170,000 square feet, and has another 500,000 square feet under development in five states.
Gotham Greens co-founder and CFO Eric Haley said: “The oversubscribed financing is strong validation of our proven farm unit economics, efficient utilisation of capital, growth rate, and best in class brand. We are excited to welcome Creadev to the Gotham Greens family and for this next phase of growth to bring local produce nationwide.”
Creadev USA managing director Delphine Descamps added: “Indoor farming is one of the most exciting and promising sectors in the world of food and ag-tech. Gotham Greens is a clear market leader and is positioned for significant growth. We were highly impressed by the company’s proven track record, greenhouse profitability, exceptional product quality and human-driven values.
“We believe that the Gotham Greens team will continue to significantly influence how fresh produce is grown and distributed both in the US and globally.”
Gotham’s greenhouses are powered by 100% renewable electricity and are said to “yield up to 30 times more crop per acre than conventional agriculture, while using 90% less water”.
By locating its greenhouse farms in cities, Gotham Greens also reduces the environmental footprint and food waste linked to shipping produce long distances, while advocating for improved healthy food access, environmental education and ‘green collar’ economic development.
© FoodBev Media Ltd 2019