BASF Venture Capital Invests In Indian Hydroponics Pioneer UrbanKisaan

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July 13, 2021

Hyderabad, India, and Ludwigshafen, Germany – BASF Venture Capital GmbH (BVC) is investing in the Indian startup UrbanKisaan, which specializes in hydroponic cultivation of various types of vegetables, greens and herbs in tropical urban environments. This is BVC’s first investment in an early stage business focusing on India. Conceptualized in 2017, UrbanKisaan operates several suburban greenhouses and vertical indoor farms in Hyderabad and Bangalore. The company sells the fresh produce, some of which is grown directly in the shops, in its franchise-owned brick-and-mortar stores and via an app and website. Both parties agreed not to disclose financial details of the investment.

UrbanKisaan has optimized hydroponics technology for use in tropical climates such as India. With only one tenth of the costs, the proprietary technology is significantly more efficient than conventional global standards in hydroponics cultivation. The company is also capitalizing on the trend of online food retailing, which is booming on the subcontinent. “Our approach in hydroponics enables us to produce our food cost-effectively and with relatively little effort,” said Vihari Kanukollu, co-founder and CEO at UrbanKisaan. “Our produce also contributes towards sustainability as it is grown in clean, hygienic farms in and around the city, thus minimizing the total carbon footprint. Use of IoT (Internet-of-Things)-enabled technology for monitoring the farms ensures pesticide-free produce. The growing demand from our customers shows that our idea is well-received,” he added.

UrbanKisaan’s farms are managed through their proprietary technology. Nutrient content, pH levels, atmospheric humidity, CO2 concentration, light concentration and other important parameters are controlled and adapted to the needs of the particular plants with an app. “UrbanKisaan, as a pioneer in the hydroponics space, has developed a unique growing method and combines this with a compelling business model for sales,” commented Markus Solibieda, Managing Director of BASF Venture Capital GmbH. He added: “AgTech is one of our key investment focus areas worldwide. This includes, in particular, our goal of supporting innovative agricultural and food-related businesses in Asia. We look forward to learning more about hydroponic farming and exploring its potential through a close collaboration between UrbanKisaan and BASF’s agriculture experts.”

With the investment from BASF, UrbanKisaan plans to further expand its market presence in India, deploy its farming technology to work with thousands of farmers, and bring fresh, local, sustainable produce to urban dwellers.

Hydroponic farming – an efficient way to use limited resources.

The world’s population is expected to reach 10 billion by 2050 1 while the area available for farming and freshwater reserves are becoming increasingly scarce. Hydroponics offers a sustainable way to grow crops without soil and using vertically stacked layers while reducing water usage by about 90 percent 2 . Especially in densely populated urban areas, this presents a more efficient way to use limited resources like water, space and manpower. Water that is not absorbed by the plants is captured, purified and fed back into the farm’s water circulation system, minimizing wastage significantly.

India is the second-largest producer of fruits and vegetables in the world, with a production value of about $64 billion 3 . It is also a large consumer of fruits and vegetables, and while much of this is through unorganized channels (local vegetable markets, hand-pulled carts and neighborhood stores), organized channels (modern trade and online retail) account for a little over 20 percent of the market 4 . Thus, hydroponics is a fast growing and efficient alternative to traditional supply chains in the organized fresh produce market.

About UrbanKisaan

UrbanKisaan was conceptualized in 2017 in Hyderabad, India. The company began as a farming enterprise but wanted to grow more than just fresh and nutritious food. They wanted to create a sustainable future for farming and feed the world in a way that is good for both people and planet. Today, with its hyper-local urban farms the company is creating a transparent supply chain with a low carbon footprint, leveraging on proprietary growing technology that helps save 90% of water yet grow 30 times more crops compared to traditional farms of similar area. Further information at www.urbankisaan.com.

About BASF Venture Capital

At BASF, we create chemistry for a sustainable future. BASF Venture Capital GmbH (BVC) also contributes to this corporate purpose. Founded in 2001, BVC has offices in Europe, the U.S., China, India, Brazil, and Israel. BVC’s goal is to generate new growth potential for current and future business areas of BASF by investing in young companies and funds. The focus of investment is on new materials, AgTech, Digitization and new, disruptive business models. Further information at www.basf-vc.com.

About BASF

At BASF, we create chemistry for a sustainable future. We combine economic success with environmental protection and social responsibility. More than 110,000 employees in the BASF Group contribute to the success of our customers in nearly all sectors and almost every country in the world. Our portfolio is organized into six segments: Chemicals, Materials, Industrial Solutions, Surface Technologies, Nutrition & Care and Agricultural Solutions. BASF generated sales of €59 billion in 2020. BASF shares are traded on the stock exchange in Frankfurt (BAS) and as American Depositary Receipts (BASFY) in the U.S. Further information at www.basf.com.

IGrow PreOwned 7/29/21 IGrow PreOwned 7/29/21

Infarm Expands Relationship With Sobeys In Canada

Infarm and Sobeys Inc. have announced a new agreement to accelerate the availability and distribution of fresh produce to an additional 4 of Canada’s 10 provinces by 2023.

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July 26, 2021

Infarm and Sobeys Inc. BB #:116615 have announced a new agreement to accelerate the availability and distribution of fresh produce to an additional 4 of Canada’s 10 provinces by 2023.

The agreement builds on the success of a partnership launched in 2020 – the first of national scope between a Canadian retailer and a vertical farming company – to offer locally grown, Infarm produce to Sobeys Inc. consumers Canada-wide.

As part of the deal, Infarm will construct new Infarm Growing Centers – growth, production and distribution hubs with high-capacity vertical farms – at sites in Calgary, Halifax and Winnipeg, with Hamilton, Ontario, near Toronto planned to host the location for the largest Infarm Growing Center in North America with a growing capacity of 37,000 ft2.

In combination with existing Infarm Growing Centers in Vancouver and Victoria/Vancouver Island, the agreement allows the company to increase production volume in Canada more than sevenfold. The deal comes in response to the increasing demand by retailers, including Sobeys, Safeway and Thrifty Food for fresh Infarm produce, and will supply more than 1000 stores in the retailer’s network alone.

With 97 employees on the ground today, Infarm’s Canadian team will grow by more than 50% to 160 by the end of the year, working from locations in British Columbia, Alberta, Ontario, Nova Scotia and Manitoba.

“We’re delighted with what has been an extremely positive and successful partnership with the Sobeys family of retailers,” said Erez Galonska, CEO at Infarm. “This expansion deal represents one of the largest rollouts of any vertical farming company in North America to date as we aim to offer local, high-quality produce to people everywhere.”

Niluka Kottegoda, Vice President Customer Experience at Sobeys Inc. said, “We are passionate about bringing Canadian families the best, freshest, most delicious produce every single day. The expansion of our exclusive partnership with Infarm demonstrates our commitment to delivering that in a technologically advanced and sustainable way.”

Reflecting on the current offer and expansion plan, she said, “We received overwhelmingly positive feedback from our customers and our store teams about the current Infarm product grown in our stores. We are thrilled to expand into the Infarm Growing Centres as they allow us to exponentially offer these great local products to a multitude of communities across Canada all year-round.”

Infarm’s growing centers integrate farming units that can each save up to 10,000,000 liters of water per year compared to soil-based agriculture for similar crops, while producing the equivalent of up to 100,000 ft2 of land. In line with the company’s goal of utilizing 100% renewable or green-certified energy, 90% of electricity used throughout the Infarm network will be from green-certified sources by September 2021.

Over the next five years, Canadian consumers can expect to select from a range of new Infarm produce to the current selection of herbs, leafy greens and microgreens now available in the retailer’s grocery aisles including tomatoes, strawberries, peppers, mushrooms, convenient cut salads and even potted plants. By 2025 Infarm plans to scale to 100 growing centers with a growing capacity of 3 million ft2.

For further information, please visit here.

About Infarm

Infarm was founded in Berlin in 2013 by Osnat Michaeli and the brothers Erez and Guy Galonska. Passionate to become self-sufficient and eat better, they were growing their own food, enjoying all the flavor and nutrients, without the chemical pesticides and transport kilometers. With the aim to share the goodness of self-grown produce with everyone, they developed a smart modular farming system that allows distribution of vertical farms throughout the urban environment, growing fresh produce in practically any available space and fulfilling practically any market demand. Today, with cutting edge R&D, patented technologies and a leading multi-disciplinary team, Infarm is growing a worldwide farming network helping cities become self-sufficient in their food production, while significantly improving the safety, quality, and environmental footprint of our food.

With a multinational team of 1000 people globally, Infarm has partnered with more than 30 major food retailers including Aldi Süd, Amazon Fresh, Auchan, Carrefour, Casino, E.Leclerc, Edeka, Empire Company Ltd (Safeway, Sobeys, ThriftyFoods), Farmdrop, Intermarché, Irma, Kaufland, Kinokuniya, Kroger, Marks & Spencer, Metro, Migros, Selfridges, Selgros and Whole Foods Market in Canada, Denmark, France, Germany, Japan, Luxembourg, the Netherlands, the United Kingdom, the United States and Switzerland, deployed more than 1300 farms in stores and Infarm Growing Centers, saved more than 16,000,000 gallons of water and 600,000 square feet of land, while harvesting 1,000,000+ plants monthly and growing.

Lead Photo: An Infarm Growing Center (IGC) with multiple state-of-the-art production modules

IGrow PreOwned 7/24/21 IGrow PreOwned 7/24/21

Four Vertical Growers Collaborating To Deliver Social-Impact Projects in Wales

Four UK vertical farming companies, LettUs Grow, Digital Farming, Farm Urban and GrowStack, are collaborating to bring the benefits of CEA to Welsh communities

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July 9, 2021

Four UK vertical farming companies, LettUs Grow, Digital Farming, Farm Urban, and GrowStack, are collaborating to bring the benefits of CEA to Welsh communities. This is one of the widest collaborations between leading CEA tech providers in the UK to date, with a focus on delivering vertical farms across different locations in Wales as part of a social impact and community-focused project called Crop Cycle.

Crop Cycle is looking to bring the benefits of vertical farming directly to communities that could benefit most and is being funded by the Welsh Government through the Foundational Economy Challenge Fund. The project is being led by Social Farms and Gardens, supported by Welsh Government's NutriWales CEA Special Interest Group and BIC Innovation.

The project enables multiple different CEA systems to be tailored to fit different community settings, whilst also allowing them to be assessed in coordination across the pilot sites. This approach is unique, facilitating the testing of new socially focused business models, the engagement of the local communities and businesses with CEA and the development of new technical solutions. LettUs Grow, Digital Farming, GrowStack and Farm Urban are working together to share their specialisms and apply different technologies to where they are best suited within four sites in Wales, two of which are in the Valleys.

This project will introduce year-round food growing right into the heart of Welsh communities, where they’ll be connected to the particular dynamics of the local area. Activities will test new community-based engagement models, focusing on social well-being, local entrepreneurship and environmental impact. In this way, the project will be bringing together community, businesses and local public sector organizations.

Gary Mitchell, the Wales Manager for Social Farms and Gardens who is leading the project team stated, "we are excited to be running the pilot project across a diverse set of sites to gain insight and further knowledge into how new agricultural systems can successfully support communities in delivering local, fresh and nutritious foods as well as important social benefits in a sustainable manner."