December 22, 2021

photo credit: Infarm

By Lynda Kiernan-Stone, Global AgInvesting Media

Founded in 2013 by Osnat Michaeli and the brothers Erez and Guy Galonska, Infarm has pioneered an urban production model that combines modular in-store micro-vertical farming units with IoT technologies and data science that are located in supermarkets, restaurants, and distribution centers. By integrating each modular unit with Infarm’s central farming platform, the company can collect data and create optimal growing environments that tailor light, temperature, pH, and nutrients tailored to each location. 

This cloud-connected farming network can be rapidly scaled with less upfront capital requirements compared to its rivals. The company’s proprietary technology can be deployed in as few as six weeks, transforming a space the size of an average living room into an urban vertical farm producing more than 500,000 plants per year.

Each of these vertical farms is equipped with numerous lab-grade sensors that have collected more than 60 billion data points from throughout the network. This data is then uploaded to the company cloud, or what Infarm calls the “farm brain”. The company’s science team analyses the data to then determine and update the growing environment in each module to improve factors such as yield, quality, and nutritional value. Over the past three years this process has been successful in reducing production costs by 80 percent and increasing yield by more than 250 percent.

This new business model can be as much as 400 times more efficient than soil-based agriculture while using no pesticides and requiring 95 percent less water. It also represents a production model that uses 90 percent fewer food miles for produce to reach consumers’ plates. 

“The current food system is broken,” said Erez Galonska, co-founder, CEO, Infarm. “Vertical farming and the Infarm system provide a sustainable solution to feed a growing population in a way that’s much better for the planet and is far more resilient and flexible in the face of climate uncertainty and supply chain disruption.”

Infarm is rapidly growing, and to support its continued growth, the company has raised $200 million through a Series D backed by both existing and new investors including Partners in Equity, Hanaco, Atomico, Lightrock, Bonnier, and the Qatar Investment Authority (QIA), which will support the company’s expansion in the Middle East. 

“QIA aims to have a positive impact through all our investments,” said His Excellency Mansoor bin Ebrahim Al-Mahmoud, CEO, QIA. “We continue to increase our exposure to leading innovators globally and we are actively targeting themes including the climate transition and technology.”

The new infusion of capital will be used by Infarm to expand the deployment of its in-store farming units and its Infarm Growing Centers in the U.S., Canada, Japan, and Europe, and to enter new markets in Asia-Pacific and the Middle East, where the company plans to open its first Growing Center in Qatar, producing tomatoes, strawberries, herbs, leafy greens, and other fruit crops,  in 2023.

“Building a global farming network of our climate-resilient vertical farms is a core mission at Infarm, which is why we’re excited to announce this latest funding round,” said Galonska. “This strategic investment will support our rapid global expansion and bolster our R&D so that we can grow more varieties of crops close to consumers across Europe, Asia, North America and the Middle East. It’s another step towards meeting our ambition of growing the entire fruit and vegetable basket in the near future, providing premium products at affordable prices to everyone.”

Infarm Growing Centers are the company’s flagship production units. These spaces connect multiple vertical farming modules, representing approximately 110,000 square-feet of growing capacity, with a distribution center to ensure quick delivery to retail locations.

Meanwhile, its smaller in-store farming units located in grocery stores enhance the experience for consumers.

All combined, the company produces more than 75 different varieties of herbs, salads, and leafy greens, and is working on expanding its portfolio with 40 new crops next year, such as mushrooms, cherry tomatoes, peas, and strawberries. 

“As a responsible, long-term investor, QIA’s purpose is to create value for future generations,” added His Excellency Mansoor bin Ebrahim Al-Mahmoud. “We see vertical farming as a way to enhance food security in every part of the world. We look forward to working with Infarm to develop their first Growing Centre in Qatar, which will contribute to Qatar’s own food security and economic diversification.”

This latest funding follows a $170 million Series C raised by the company in September 2020, and an additional $100 million added to the round in March 2021. Today, with the addition of this capital, the company stated that its valuation now exceeds $1 billion.

– Lynda Kiernan-Stone is editor with GAI Media, and is managing editor and daily contributor for Global AgInvesting’s AgInvesting Weekly News and  Agtech Intel News, as well as HighQuest Group’s Oilseed & Grain News. She can be reached at lkiernan-stone@globalaginvesting.com.