Brief: Gotham Greens raises $310m to build greenhouses across the US

• US-based indoor farming startup Gotham Greens has landed $310 million in Series E funding to expand its greenhouse facilities in the US. 
• BMO Impact Investment Fund and Ares Management led the round, with participation from Commonfund, RockCreek, Kimco Realty Corporation, Manna Tree Partners and The Silverman Group. 
• Gotham Greens has also acquired indoor leafy green grower FresH2O Growers, Inc. for an undisclosed amount.

Why it matters:

Gotham’s latest raise is all about getting its products into the hands of as many consumers as possible. The New York-based company already operates greenhouse farms in its home state as well as Rhode Island, Maryland, Illinois, Colorado and California. The company says its leafy greens and herbs are in 3,000 grocery stores including those from Whole Foods Market, Kroger and Albertsons, amongst others.

Funding will go towards the construction of greenhouses in Colorado, Georgia and Texas, as well as toward expansions of the company’s Illinois and Rhode Island facilities. In a statement, Gotham co-founder and CEO Viraj Puri said the company aims to make its produce “within a day’s drive from our greenhouses to 90% of consumers across the U.S.” 

Gotham’s $310 million raise is one in a series of mega-fundraises from indoor farmers in the last year or so. Bowery Farming’s $300 million Series C was the biggest investment of the Novel Farming Systems category in 2021, according to AgFunder data. In January of this year, West Coast-based Plenty announced a $400 million raise. [Disclosure: AgFunder is AFN’s parent company.]

De-centralizing the supply chain is one of these companies’ key goals. By strategically placing growing facilities around the country, grocery retailers and consumers alike will get access to fresher produce that hasn’t racked up emissions by traveling across the country to reach store shelves.

Gotham’s latest raise brings its total financing to $440 million. As part of its expansion strategy, the company acquired Virginia-based H2O Growers Inc., which also grows leafy greens indoors. Part of the acquisition includes H2O’s 540,000-square-foot hydroponic greenhouse in Stevensburg, Virginia. That facility supplies grocery stores in the Mid-Atlantic part of the country.