December 14, 2020

By Lynda Kiernan, Global AgInvesting Media

Following a year in which Gotham Greens doubled its revenue and doubled its capacity, the company announced the raising of $87 million in capital that includes its recent Series D led by existing investor Manna Tree. The funding was also backed by The Silverman Group and additional existing investors, bringing total capital raised by the company to-date to $130 million. 

“Manna Tree brings a global network of investors and shares our mission and commitment to expand access to healthy, sustainably-grown fresh produce,” said Eric Haley, co-founder and CFO, Gotham Greens. “Our industry-leading crop yields and capital efficiency in building and operating indoor farms continues to attract strong support from both new and existing investors and underscores Gotham Greens’ value proposition and category leadership position.”

Launched by co-founders Viraj Puri, Eric Haley, and Jennifer Nelkin Frymark with a single 15,000 square-foot greenhouse on the roof of a bowling alley in Brooklyn, New York, Gotham Greens has grown into a leading indoor agriculture and plant-based food innovator operating one of the largest and most advanced networks of of hydroponic greenhouses producing leafy greens across North America.

“After opening our first greenhouse in Chicago in 2015, we have received tremendous support from retailers, restaurants and shoppers alike who love that we can provide a reliable, year-round supply of fresh produce that’s grown locally,” said Viraj Puri, co-founder and CEO, Gotham Greens in 2019. 

With this latest capital, Gotham intends to accelerate its mission to decentralize food production; undertake channel and geographic market expansion to bring more fresh foods to people across the U.S.; to increase its operational capacity; and to drive new product development.

Decentralization is a key theme of the indoor ag growth story.

Adam Bergman, managing director, EcoTech Capital, noted in his article, Is Agriculture the Next Area to Experience Decentralization? published by GAI News in August 2020, “Agriculture in the U.S. has been transformed over the last 50 years as small family farms have been swallowed up or replaced by large corporations.  The resulting economies of scale have led to farming on an industrial level, with crops optimized for output, and livestock raised for size and milk production, rather than taste and nutrition, and with an increasingly harmful impact to the environment.”

He goes on to say, “Nevertheless, we are starting to see the beginning of a more decentralized production system, driven by the growth of indoor farming.”

Puri also touched upon the decentralization we are seeing when he said, “Given increasing challenges facing centralized food supply chains, combined with rapidly shifting consumer preferences, Gotham Greens is focused on expanding its regional growing operations and distribution capabilities at one of the most critical periods for America. We’re dedicated to changing how people think, feel and interact with their food while decreasing the environmental footprint of the traditional produce supply chain.”

Supported by consumer demand and driven by its ability to decentralize supply chains that have shown their weaknesses this past year, Gotham Greens is the fastest growing indoor ag company in the U.S. Over the past 12-month period the company has not only doubled its operational capacity and its revenue, but has brought its fresh produce and food products to retailers in more than 40 states through its high-tech, climate-controlled greenhouses for an 80 percent growth in retail unit sales year-on-year.

“Gotham Greens is the fastest-growing indoor farming company in the United States today with a track-record of profitable, commercial-scale production,” said Brent Drever, co-founder and president of Manna Tree.

“The pandemic has revealed flaws in America’s food supply chain system, particularly in the produce category, and new leaders and innovators need to emerge to ensure a stable food supply for the future,” continued Drever. “We believe Gotham Greens’ brand, highly scalable business model and leadership team position the company to be the market leader in the rapidly growing and changing landscape.”

Expanding beyond strictly greens to value-added plant-based food products, Gotham has recently launched several new items including packaged salads, cooking sauces, and on-the-go salad bowls featuring Gotham Greens lettuce, salad dressing, and toppings.

And with new greenhouses in Chicago, Providence, Baltimore, and Denver, Gotham has expanded its reach throughout the New England, Mid-Atlantic, Southeast, and Mountain regions of the country, selling products through 2,000 retail stores including Whole Foods, Albertsons Companies (Safeway, Jewel-Osco, and Shaw’s), Meijer, Target, King Soopers, Harris Teeter, ShopRite, and Sprouts.

– Lynda Kiernan is editor with GAI Media, and is managing editor and daily contributor for Global AgInvesting’s AgInvesting Weekly News and  Agtech Intel News, and HighQuest Group’s Oilseed & Grain News. She is also a contributor to the GAI Gazette. She can be reached at lkiernan@globalaginvesting.com.