Berlin-Based Infarm Raises €144 Million During Pandemic To Grow Largest Urban Vertical Farming Network In The World

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By Charlotte Tucker

September 17, 2020

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Today German startup Infarm, one of the world’s fastest-growing urban farming networks, has announced an approx. €144 million investment raised in the first close of a Series C funding round expected to reach around €169 million. Led by LGT Lightstone, the first round included participation by investors Hanaco, Bonnier, Haniel, and Latitude and was supported by existing Infarm investors Atomico, TriplePoint Capital, Mons Capital, and Astanor Ventures.

Founded in Berlin in 2013 by Osnat Michaeli and the brothers Erez and Guy Galonska, Infarm is dedicated to creating a future where local super fresh produce is available for everyone. The farms are placed in various locations in the city, like supermarkets, restaurants, and distribution centers, so that vegetables grow and are harvested close to the moment of purchase or consumption.

These controlled, growing environments are connected to a central cloud-based farm-brain which gathers more than 50,000 data points through a plant’s lifetime, allowing the platform to learn, adapt and improve itself constantly so that every plant grows better than the one before. This modular, data-driven, and distributed approach — a combination of big data, IoT, and cloud analytics, in addition to rapid growth at a global scale — sets Infarm apart from any other urban farming solution.

With a mix of equity and debt financing, the scaleup’s fresh capital infusion brings Infarm’s total funding to date to more than €254 million, underscoring consumer and retailer appetite for Infarm’s innovative approach to fresh, sustainable and local food production in the wake of this year’s pandemic. By 2025, Infarm’s farming network is expected to reach more than 5,000,000 square feet to become the largest distributed farming network in the world as it builds towards helping cities become self-sufficient in their food production.

The investment will be used to deepen the regional and local reach of Infarm’s global farming network and complete the development of Infarm’s new generation of vertical cloud-connected farms, capable of generating the crop-equivalent of acres of farmland and amplifying the diversity of produce currently available through vertical farming. An integration of advanced engineering, software and farming technology, these farms will save labor, land, water, energy, and food-miles while contributing to a more sustainable food system.

Erez Galonska, Co-founder and CEO of Infarm said: “The coronavirus pandemic has put a global spotlight on the urgent agricultural and ecological challenges of our time. At Infarm, we believe there’s a better, healthier way to feed our cities: increasing access to fresh, pure, sustainable produce, grown as close as possible to people. As we scale to 5,000,000 sq ft in farming facilities across Europe, North American and Asia by 2025, this investment will help us make a truly global impact through our network, preserving the thousands of acres of land, millions of liters of water, and ultimately change the way people grow, eat and think about food.”

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In the past 12 months alone, Infarm has formed new partnerships with the world’s largest retailers, including Albert Heijn (Netherlands), Aldi Süd (Germany), COOP/Irma (Denmark), Empire Company Ltd (Sobeys, Safeway, Thrifty Foods – Canada), Kinokuniya (Japan), Kroger (United States), Marks & Spencer (United Kingdom) and Selfridges (United Kingdom), driving market expansion beyond Germany, France, Luxembourg and Switzerland to the United Kingdom, the United States, Canada, Denmark, the Netherlands, and Japan.

With operations across 10 countries and 30 cities worldwide, Infarm harvests 500,000+ plants monthly and growing while using 99.5% less space than soil-based agriculture, 95% less water, 90% less transport and zero chemical pesticides. Today, 90% of electricity use throughout the Infarm network is from renewable energy and the company has set a target to reach zero emission food production next year.

Dharmash Mistry, Partner of LGT Lightstone said: “We are excited to partner with the Infarm team to accelerate their urban vertical farm vision, ultimately creating a more sustainable food system for a growing population. Fresher, tastier & healthier food using 95% less land & water, no pesticides and 90% less transport. With over $1 billion of customer demand, partnerships with 17 of the top 50 global grocers, Infarm is set to revolutionize the market behind a unique ‘demand led’ modular business model. We look forward to working with Erez, Guy & Osnat to create a better, healthier & tastier future.”

Pasha Romanovski, Co-founding Partner of Hanaco Ventures said: “We are big believers in vertical farming as we see the traditional industry going through (much needed) rapid disruption these days. We were deeply impressed by Infarm’s founders and management, with their ability to move fast and execute. What is extremely appealing about Infarm is their innovative and modular approach, using cutting edge technology that unlocks added value throughout the supply chain, benefiting both the retailers and end-customers. We see a massive demand in the market for sustainable, environment-friendly, and healthy food – and Infarm has just the right team in place to make this happen.”

Kuwait JV Opens Large-Scale Indoor Vertical Farm

August 16, 2020

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&Ever Middle East, a joint venture between Kuwait’s NOX Management and German company &ever, in partnership with German engineering companies SAP and Viessmann,  has opened the first commercial indoor vertical farm in the Middle East.

Kuwait, a country that previously relied on European and overseas imports for most of their leafy greens and herbs, can now locally grow up to 250 varieties of greens and herbs using dryponics technology. 

The facility, with approximately 3,000 sq m growing (or farming) space, has a daily output capacity of up to 550 kg of salad, and herbs.  The products are available in all leading retailers and co-operatives under the brand name &ever Kuwait.  

The farm produces high-quality and sustainable crops indoors, which increase the nutritional quality and decrease environmental impact. The cutting-edge vertical farming method uses 90 percent less water compared to traditional farming, 60 percent less fertilizer, and zero pesticides. Using a sustainable “farm to fork” model, the technology is able to preserve the plants’ nutritional value until the produce reaches the customer, said the statement.

“Previously, Kuwait’s restaurants imported all of our greens and herbs, mainly from Europe,” said Faisal AlMeshal, Director of Strategy and Business Development, NOX Management. “Our JV with &ever and the partnership with SAP and Viessmann on this indoor farm is enabling the local farming supply chain to save on costs and logistics, to minimize waste, and to make a better choice for the planet. Our customers have enhanced experiences with tastier and fresher produce.”

This knowledge exchange complements Germany and Kuwait’s trade ties. Bilateral trade is €1.3 billion, and Germany’s private sector invests €14.6 billion in Kuwait, according to Germany’s Federal Foreign Office.

Germany and Kuwait are strong partners not only in politics but also in business, said Stefan Möbs, German Ambassador to Kuwait, who recently participated in a virtual media roundtable about the farm’s success hosted by the German Business Council Kuwait. 

“I welcome the innovative business idea of German company &ever specifically here in Kuwait. Both countries are seeking new ways in difficult times. Even better to work together!”

Climatized rooms

The farm has partnered with Viessmann Refrigeration Solutions to develop highly efficient climatized rooms which are used in its indoor vertical farm. The technology is 40% more energy-efficient than other indoor vertical farming systems when it comes to energy use for climatization, said the statement. 

&ever built its operating system, &ever Cloud, using the SAP Business Technology Platform -- SAP HANA in-memory platform and SAP Cloud Platform. Farmers can monitor, analyze, and adjust hundreds of data points on plant health, airflow, light, carbon dioxide levels, humidity, and temperature in real-time. 

“Technology is the foundation for transforming customer experiences in restaurants and agricultural production in Kuwait, and for fostering diversified economic growth and sustainable agriculture worldwide,” said Andy Froemmel, Managing Director, SAP Kuwait. “Digitally transforming Kuwait’s agricultural sector supports New Kuwait 2035 goals, and helps to foster the local innovation economy and job creation.”

&ever is ready for global roll-out 

Building on the global deployment capabilities of its key partners, &ever will scale its operations quickly and globally. “Our vision is to bring better tasting greens with high nutritional value to more and more people,” says Mark Korzilius, Founder of &ever. “We have an interesting pipeline of opportunities around the globe,” adds Dr Henner Schwarz, CEO of &ever. “We hope to be able to travel internationally again soon to get our next farms live as quickly as possible.” 

The German Business Council Kuwait is a non-profit organization and business platform, founded in 2005, in order to promote and cultivate relations between German-speaking individuals and companies with their counterparts from the host country and the region. - TradeArabia News Service

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