Just when you thought the controlled environment agriculture hype was winding down, San Francisco-based vertical farming company Plenty Unlimited Inc. secures its largest investment to date.
The indoor ag startup procured $400 million in a Series E financing round, led by One Madison Group and JS Capitol, that includes Walmart and existing investing partner SoftBank Vision Fund 1 in January 2022.
Leaders from Walmart and One Madison Group will join Plenty’s board of directors, and the $400 million in funds will propel Plenty’s growth, which includes using its technology platform to sell multicrop farms directly to its business partners, according to a news release.
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“The indoor farming sector is at an exciting inflection point, poised to reach its full potential as a new asset class that addresses the significant need to provide access to fresh, nutritious food year round, even in geographies where traditional farming is difficult,” Omar Asali, chairman and CEO of One Madison Group, said in the release. “Plenty has truly ‘cracked the code’ on the technology and economics of indoor farming. It has developed an innovative and scalable model that can deliver fresh, sustainable produce to retailers, growers and governments anywhere in the world.”
Partnership with Walmart
In addition to financing, Plenty has signed a commercial agreement with Walmart to “lead a new category of fresh products and bring Plenty farms closer to Walmart customers to offer pesticide-free, sustainable produce year round,” according to the release. The partnership will kick off by first sourcing Walmart’s California stores with Plenty’s leafy greens from its Compton farm.
“We are pleased to work with a strong group of investors who recognize how Plenty’s proprietary approach to building and selling farms delivers a scalable, cost-efficient pathway to bringing fresh, clean produce to market 365 days a year, anywhere in the world,” Plenty CEO Arama Kukutai said in the release. “Having Walmart, as one of the world’s largest retailers, partner with us demonstrates the rising importance of indoor agriculture to the future of fresh and their belief in Plenty’s unique technology solution.”
Closure of Plenty’s Tigris farm
Amid heady financing rounds and new partnerships, it’s not all rose-colored glasses in Plenty’s vertical empire. While Plenty’s Compton farm continues to flourish, Plenty’s Tigris vertical farm facility, opened in 2019 in South San Francisco, will likely shutter in the coming weeks.
Filing a layoff notice for 18 employees with the state of California effective Jan. 31, 2023, Plenty cited the “permanent closure” of its 200,000-square-foot Tigris facility.
The company confirmed in a statement to AgFunder News that, “As we work to complete our buildout and ramp-up of the world’s highest-output indoor vertical farm in Compton, we will shift all commercial production there. In 2023, we will be closing our South San Francisco facility. Our research & development facility in South San Francisco helped us expose the market to Plenty produce, but we have outgrown its capabilities.”
“With support from leading retailers and growers and a new focus on selling farms directly to partners, we believe that Plenty is at a critical inflection point that will have a lasting impact on the entire industry,” Andrew Zloto, director at SoftBank Investment Advisers and Plenty board member, said in the release. “We’ve been a long-term partner to Plenty and are delighted to continue to support them as they continue to innovate and rewrite the playbook for indoor growing."