Gotham Greens raises $310M and makes first acquisition

Dive Temporary:

  • Gotham Greens raised $310 million in a Sequence E spherical led by BMO Impression Funding Fund and Ares Administration. The indoor farming firm plans to make use of the funding to help greenhouses underneath development in Texas, Georgia and Colorado; facility expansions in Illinois and Rhode Island; in addition to future initiatives and acquisitions.    
  • Gotham Greens additionally has acquired FresH2O Growers Inc., a Virginia-based producer of leafy inexperienced salad merchandise, for an undisclosed quantity. The acquisition features a 540,000-square-foot hydroponic greenhouse in Stevensburg, Virginia, that provides grocery shops within the Mid-Atlantic area. 
  • The managed atmosphere agriculture (CEA) house continues to attract buyers and massive fundraising rounds to help the appreciable prices related to constructing and working its high-tech greenhouses.

Dive Perception:

With its largest funding spherical up to now, Gotham Greens is pondering huge because it expands its nationwide footprint and product combine.

By 2023, the New York-based indoor farming firm plans to personal and function 13 climate-controlled hydroponic greenhouses in 9 states, spanning greater than 40 acres. Gotham Greens already has a presence within the Northeast, Midwest and the Mountain and Western areas. Its $34 million greenhouse underneath development in Monroe, Georgia, is not going to solely assist set up its presence within the Southeast but additionally give it entry to the large Atlanta market about 50 miles away.

The acquisition of FresH2O Growers fills in a few of the gaps between Gotham Greens’ Northeast and Southeast markets. The acquisition — Gotham Greens’ first in its 13-year historical past — and expansions will assist it meet its aim of doubling the dimensions of its greenhouse capability to greater than 1.2 million sq. ft in 2022. 

Gotham Greens noticed a 26% year-over-year gross sales enhance in leafy greens, in response to Nielsen information shared by the corporate, in comparison with a 3% progress for the complete standard greens phase. Past salad greens, the corporate’s product line has expanded into herbs, refrigerated salad dressings, dips and cooking sauces. 

Its merchandise can be found in additional than 3,000 grocery shops nationwide together with Complete Meals, Kroger, Albertsons and Amazon Contemporary. Gotham Greens is aiming to ship its contemporary produce inside a day’s drive of its greenhouses to 90% of shoppers throughout the U.S.

“In the present day, our ambitions and footprint are outgrowing our roots in the easiest way,” Viraj Puri, co-founder and CEO of Gotham Greens, mentioned in an announcement. “We’re humbled to obtain this funding from new and current buyers to proceed our nationwide growth.” 

Gotham Greens has raised a complete of $440 million because it was based in 2009, in response to the corporate. Its sequence E spherical is among the largest but within the CEA house, inserting it amongst Bowery Farming’s $320.7 million Sequence C funding spherical and Upward Farms’ $121.7 million Sequence B. The information additionally exhibits buyers’ enthusiasm has not waned for the phase even after a banner 12 months in 2021. Indoor growers raised a complete of $1.3 billion final 12 months, in response to PitchBook, up 25% from 2020.

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