Gotham Greens Makes Waves With New Acquisition and New Funding

Gotham Greens, the New York-based indoor farming pioneer that operates one of the largest networks of high-tech hydroponic greenhouses in North America, has raised more than $310 million in new capital, bringing total financing of the rapidly growing company of $440 million since. its founding in 2009. The latest fundraising round, the company’s largest to date, includes equity and debt funding led by new investors BMO Impact Investment Fund (IIF), a sustainability-focused investment fund in Bank of Montreal (BMO), and Ares Funds management. The Series E round was joined by additional new investors, including Commonfund, RockCreek, and Kimco Realty Corporation, along with existing investors, including Manna Tree Partners and The Silverman Group.

As a leader in the indoor farming and fresh food categories, Gotham Greens plans to use the funding to accelerate its mission to decentralize agricultural production and bring more greenhouse-grown produce and fresh, plant- based foods to people across the US through channel and geographic market expansion, increased operational capacity, and new product development.

This Series E capital raise will support Gotham Greens’ new greenhouse projects currently under construction in Seagoville, TX (near Dallas), Monroe, GA (near Atlanta), and Windsor, CO (near Denver); the expansion of its existing greenhouses in Chicago and Providence, RI; as well as future projects and acquisitions in other US regions

By 2023, Gotham Greens will own and operate 13 high-tech, climate-controlled hydroponic greenhouses, spanning more than 40 acres (1.8 million square feet) in nine states. The greenhouse expansion projects join Gotham Greens greenhouse farms in New York, Rhode Island, Maryland, Illinois, Colorado, and California. The new greenhouses will enable Gotham Greens to continue serving many of the nation’s largest grocery retailers, which continue to see a steady increase in consumer demand for greenhouse-grown produce.

“Gotham Greens was founded with a vision to advance indoor farming and sustainably grow high-quality leafy greens in cities across America every day of the year. Today, our ambitions and footprints surpass our roots in the best possible way, and we are humbled to receive this funding from new and existing investors to continue our national expansion to achieve our goal of delivering Gotham Greens that fresh produce within a day’s drive. from our greenhouses to 90% of consumers across the US,” said Viraj Puri, Co-Founder and CEO of Gotham Greens. “With the growing issue that in relation to the climate and supply chain facing our food system, it is more important than ever to bring new farming solutions that grow quality produce while using less valuable natural resources l resource. Gotham Greens is growing rapidly, and we look forward to bringing our brand to new markets in the coming months.

Gotham Greens also recently completed the acquisition of FresH2O Growers, Inc., a 540,000 square foot hydroponic greenhouse grower in Stevensburg, VA (50 miles southwest of Washington, DC). freshH2O leafy green salad products are sold in grocery stores throughout the Mid-Atlantic region.

“We are proud to pass the torch of the greenhouse facility and business to Gotham Greens, our trusted friends and industry partners. We are impressed with Gotham Greens’ outstanding track record of industry success and exceptional growers, and there is no better choice of CEA industry to continue what we built in Virginia,” said Joe Van Wingerden, former owner of FresH2O Growers, Inc . “Gotham Greens and FresH2O share a desire to advance greenhouse agriculture and bring fresher, local, and sustainably grown produce to consumers across the country, and we are confident they will continue to serve our customers with high quality, longer lasting leaves. vegetables and other exciting innovations in the coming years.

After more than a decade in operation, Gotham Greens continues to grow in double digits, achieving 26% year-over-year growth in the leafy greens category alone. Through strategic expansion, national and regional retail partnerships continue to grow with key accounts, including Whole Foods Market, The Kroger Co., Albertsons, Sprouts Farmers Market, The Fresh Market, AmazonFresh, FreshDirect and many more. Gotham Greens products are available in over 3,000 grocery stores nationwide.

“The Gotham Greens management team has a demonstrated track record of successful implementation, developing a distributed network of greenhouse facilities with near-national reach while producing positive facility levels. economic unit, an important difference in indoor farming,” said Marc Khouzami, Managing. Director, BMO Impact Investment Fund. “BMO IIF is excited to partner with Gotham Greens in the company’s next phase of growth, as they continue to expand their market share and strengthen their position as a leading indoor farming operator.”

“Ares is excited to support Gotham Greens’ plans to expand its leadership within the rapidly growing managed environmental agriculture sector,” said Mike Roth, Partner of Ares Infrastructure Opportunities strategy. “Through its innovative approach to food production, Gotham Greens has built a strong business model that also drives positive environmental and social impact within its communities. We look forward to working with the team at Gotham Greens as we continue to advance our commitment to supporting climate sustainable infrastructure while seeking to deliver attractive returns for our investors.

Gotham Greens intends to expand its operations to provide sustainable supply chain solutions to a variety of retail and food service customers. The Colorado River is rapidly drying up, creating a water crisis in seven states, including California and Arizona, which collectively provide 98% of the leaves planted in the United States. In California, where Gotham Greens recently opened a greenhouse in 2021, more than 37 million people are affected by drought with 87% of the state classified as Severe or Extreme Drought. By using a hydroponic growing system in renewable electric-powered greenhouses, Gotham Greens farms use 95% less water and 97% less land compared to conventional farming. The proximity of Gotham Greens greenhouses to major metropolitan markets also eliminates the need for long-distance refrigerated transportation while improving product quality and shelf life, and ultimately reducing food waste.