Brooklyn, N.Y.-based rooftop farming firm Gotham Greens has received $29 million in new equity financing it said would accelerate its nationwide expansion.
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 multistate indoor farmer 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 private equity 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 CEO of Gotham Greens, in a statement. "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 climate-controlled urban greenhouses in close proximity to retailers and food service providers, ensuring year-round supply chain reliability, transparency and traceability. The company owns and operates four production-scale facilities in New York 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. It said 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.
"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 of 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 said its business model combines proven hydroponic controlled-environment agriculture together with proprietary cultivation techniques, providing "best in class" crop yields. Its greenhouses are powered by 100% renewable electricity and yield up to 30 times more crop per acre than conventional agriculture while using 90% less water and eliminating agricultural runoff and the use of harmful chemicals. By locating its greenhouse farms in cities, Gotham Greens also 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.