February 28, 2024

Photo credit: Oishii

By Lynda Kiernan-Stone, Global AgInvesting Media

The aptly named vertical farming leader Oishii (meaning “delicious” in Japanese) announced the successful closing of a $134 million Series B led by Japanese telecommunications company NTT, bringing total funding to-date to $189 million.

“While many in the industry prioritize short crop cycles and unrelenting expansion, Oishii has bucked all trends by emphasizing taste over timelines and profitability over proliferation,” said Akira Shimada, president and CEO, NTT. 

“Oishii is a leading company with a great vision, a strategic approach, and one-of-a-kind technology, and has succeeded in what was previously considered difficult to achieve. We are confident that Oishii will be a great partner to take on the challenges for the future of agriculture.”

The company’s expertise in food tech, sustainable agriculture, and automation attracted a diverse range of investors to this round including new investors Bloom8, McWin Capital Partners, Mizuho Bank, Mitsubishi Shokuhin Co., Ltd., the Japan Green Investment Corporation for Carbon Neutrality (JICN) – a fund established by the Japanese Ministry of the Environment – and industrial robotics company Yaskawa Electric Corporation.

Known for its innovative farming methods, Oishii has joined nature with technology, and has accomplished what was once thought to be the impossible in vertical farming – it has perfected one of the most complex crops to grow in such a manner at commercial scale, overcoming hurdles with its proprietary and first-of-its-kind pollination method, carried out naturally with bees.

In 2018, only two years after launching, Oishii introduced its Omakase Berry – an artisanal Japanese strawberry known for its unique sweetness, aroma, and creamy texture that was once only found on a seasonal basis in the Japanese Alps.

Oishii was able to recreate the ideal growing conditions for the Omakase Berry under CEA conditions at its indoor vertical farms. This achievement marked the first time the berry had ever been grown in the U.S., and it quickly gained the attention of Michelin-starred chefs, including chefs at The Chef’s Table at Brooklyn Fare, Masa, Atera, Atomix, L’Atelier de Joël Robuchon, Dominique Ansel Bakery, Café Kitsuné, and Murray’s Cheese.

By October 2021, the company made its West Coast debut with the opening of its vertical farm in Los Angeles, California, marking the first time its berries were made available outside the New York metro region. 

And in early 2023, the company unveiled its second strawberry – The Koyo Berry – in the Washington D.C. area, before expanding it into Maryland, Massachusetts, Connecticut, and New Jersey. Only months later the company pivoted to launch its Rubi Tomato. 

Along the way, Oishii has remained fully committed to efficiency and technological innovation including the introduction of state-of-the-art harvesting robots developed in partnership with Yaskawa, and the optimization of its AI models that power bee pollination, environmental controls, and farm output to grow more while using less energy. 

Continuing its impressive growth trajectory, Oishii has further plans to release another new type of berry later this year. 

As 2023 was a challenging and volatile year for vertical farming in general, Oishii has emerged not only intact, but thriving, positioned to excel in a market that was valued at $4.16 billion in 2022, and is expected to grow at a CAGR of 27.3 percent to reach a value of $27.42 billion by 2030.

With the capital from this Series B, the company plans to open a solar-powered facility, expand its distribution into new markets, and continue to invest in advanced robotics and energy-saving innovations. 

“We founded Oishii to solve some of the biggest food supply issues our world faces today – but to do so deliciously,” said Hiroki Koga, CEO and co-founder, Oishii. “The time is now to take our technology from a promise of a better tomorrow to a proven reality – making good on the movement my predecessors in Japan started a decade ago.”

“This capital will help us pave the way for mainstream adoption of vertical farming in the U.S., and we’re grateful to welcome many new partners to the Oishii family who share our vision of a sweeter future.”

~ Lynda Kiernan-Stone is editor in chief 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 Unconventional Ag. She can be reached at lkiernan-stone@globalaginvesting.com.

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