Marks and Spencer Group plc (MKS.L)

Infarm Raises $170 Million For Vertical Farming Expansion

(Bloomberg) -- Infarm said it attracted $170 million in the first close of a fundraising round to help the farming tech company expand globally, as investors pile cash into the emerging industry that’s experienced a surge of interest during the Covid-19 pandemic.The Berlin-based company expects the round to ultimately exceed $200 million, Infarm said in a statement on Thursday.Infarm grows crops in controlled indoor environments and uses less water, land and pesticides than traditional farming methods. This approach can also aid food supply chain fragility, a problem highlighted by panic buying this year, as crops are grown close to the people eating them.“The coronavirus pandemic has put a global spotlight on the urgent agricultural and ecological challenges of our time,” said Infarm Chief Executive Officer Erez Galonska. “It allowed us to attract high-profile investors and show that what we can offer to the market is here to last.”The new equity and debt investment was led by London-based LGT Lightstone Europe LLP, with further backing from venture capital firms Hanaco Ventures, Bonnier Ventures and Atomico.Infarm expects its farming network to grow to more than 5 million square feet by 2025 from 500,000 square feet by the end of 2020. It has partnerships with more than 30 retailers including Marks & Spencer Group Plc and Selfridges & Co. The company deploys its modular farms, growing herbs and other produce, inside grocery stores.The funding will be used to expand its regional and local network and complete a new generation of vertical, cloud-connected farms. “This round is going to enable us to execute against all the backlog of contracts that we signed with the leading retailers,” Galonska said in a phone interview.“It’s meaningful that they can raise for a business like this,” said Hiro Tamura, partner at Atomico. “It’s not a small progress point.”Both Atomico and Infarm declined to comment on the company’s valuation.High-profile investments into vertical farming have ramped up throughout the pandemic, such as with Ocado Group Plc, which increased its stake in Europe’s Jones Food Company to about 70% from 58%.(Updates with Ocado in final paragraph.)For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.