Gotham Greens Raises $29 Million In Growth Equity Funding
Gotham Greens Raises $29 Million In Growth Equity Funding
JULY 06, 2018
Gotham Greens, a leading urban greenhouse developer and grower of locally and sustainably grown produce, has announced the closing of $29 million in Series C equity funding last month. The new round brings the company’s total funding to $45 million, not including bank debt. Since its launch in 2011, Gotham Greens has grown from a single urban rooftop greenhouse in Brooklyn to a multi-state indoor farming leader and one of the largest hydroponic leafy greens producers in North America.
The round was led by the company’s existing investors, including the Silverman Group, along with a significant new investment from Creadev, a global private equity investment firm controlled by the Mulliez family.
“This funding enables us to continue on our path of rapid growth that is providing consumers with fresher, better tasting, locally grown produce while transforming urban real estate and promoting sustainable agriculture,” said Viraj Puri, co-founder, and chief executive officer. “We’re inspired every day by the dedication and talent of our team to grow and purvey exceptionally high-quality, nutritious produce while contributing to the better food movement.”
Gotham Greens grows fresh produce in technologically advanced, climate-controlled urban greenhouses in close proximity to retailers and food service providers. This ensures year-round supply chain reliability, transparency, and traceability. The company currently owns and operates four production-scale facilities in New York City and Chicago totaling 170,000 square feet and has another 500,000 square feet under development in five states. The company announced new greenhouses in Chicago and Baltimore earlier this year. The funding will help finance the expansion trajectory, widen distribution, grow its team, and enhance research and development in controlled environment food production techniques, data science, and machine learning.
“The oversubscribed financing is strong validation of our proven farm unit economics, efficient utilization of capital, growth rate, and best in class brand,” said Eric Haley, co-founder, and chief financial officer. “We are excited to welcome Creadev to the Gotham Greens family and for this next phase of growth to bring local produce nationwide.”
“Indoor farming is one of the most exciting and promising sectors in the world of food and ag-tech. Gotham Greens is a clear market leader and is positioned for significant growth. We were highly impressed by the company’s proven track record, greenhouse profitability, exceptional product quality and human-driven values,” said Delphine Descamps, managing director for Creadev USA. “We believe that the Gotham Greens team will continue to significantly influence how fresh produce is grown and distributed both in the U.S. and globally.
Gotham Greens’ business model combines proven hydroponic controlled environment agriculture together with proprietary cultivation techniques and the art of growing. The company reports best-in-class crop yields under the leadership of managing partner and plant scientist, Jenn Nelkin Frymark. Gotham Greens’ greenhouses are powered by 100 percent renewable electricity and yield up to 30 times more crop per acre than conventional agriculture while using 90 percent less water and eliminating agricultural runoff and the use of harmful chemicals.
The company’s growing methods and shortened supply chain reduce the risk of food-borne pathogens. By locating its greenhouse farms in cities, Gotham Greens eliminates the environmental footprint and food waste linked to shipping produce long distances while advocating for improved healthy food access, environmental education, and green collar economic development.