Indoor farming startup Infarm raised an extra $200 million from investors including the Qatar Investment Authority (QIA) to fund a push into new markets such as the Middle East as part of a global expansion.
Infarm grows products like salad greens and herbs in indoor centers in Europe, North America and Japan, and supplies retailers like Amazon Fresh, Metro AG and Marks & Spencer Group. The Amsterdam-headquartered company plans to use the new funding to expand to more fruit and vegetables and to open its first center in Qatar in 2023 as it enters new markets in the Middle East and Asia-Pacific.
It’s targeting harvesting tomatoes, strawberries and other fruits besides produce like herbs and salads at the Qatar center.
Growing crops on vertically stacked shelves in cities has gained traction as the Covid pandemic snarled supply chains and brought food security to the fore, especially in nations that import most of their food. It uses less space, water and pesticides than conventional farming. The food can also be grown closer to consumers, reducing transport needs, but can be much more energy intensive.
Infarm said it has raised more than $500 million -- ranking it among the best-funded vertical farming companies -- and has a valuation of more than $1 billion.
The Middle East region has stepped up food-production plans in recent years, targeting everything from growing rice in the desert to researching how to make food in space and other extreme climates.
"We see vertical farming as a way to enhance food security in every part of the world,” Mansoor bin Ebrahim Al-Mahmoud, chief executive officer of QIA, said in a statement.
“As a responsible, long-term investor, QIA’s purpose is to create value for future generations. 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,” he added.
Infarm Growing Centres are Infarm’s flagship production units. The spaces connect multiple vertical farming modules, offering the equivalent of about 10,000m2 of growing capacity, with a distribution centre that ensures quick delivery to supermarkets. Infarm also builds smaller in-store farming units for grocery stores, making the shopping experience more dynamic for consumers. Both designs were developed to maintain superior freshness while consuming considerably fewer resources than soil-based agriculture. In addition to the more than 75 different varieties of herbs, salads and leafy greens.
Infarm currently produces, the company is working to expand its portfolio with 40 new crops next year such as mushrooms, cherry tomatoes, peas and strawberries.
“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,” Erez Galonska, co-founder and CEO of Infarm, said.
