NEW YORK — Indoor farming operator Gotham Greens has secured more than $310 million in a Series E funding round to support the construction of new greenhouses and expansion of existing greenhouses, as well as future projects and acquisitions. Since its founding in 2009, the company has raised a total of $440 million.
By 2023, Gotham Greens will own and operate 13 hydroponic greenhouses spanning more than 40 acres across nine states. Greenhouses in Seagoville, Texas; Monroe, Ga.; and Windsor, Colo., are currently under construction. The company also is expanding existing greenhouses in Chicago and Providence, RI. Additional greenhouse farms are located in New York, Maryland and California. Gotham Greens also recently acquired FresH20 Growers, Inc., a 540,000-square-foot hydroponic greenhouse grower in Stevensburg, Va.
“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,” said Viraj Puri, co-founder and chief executive officer of Gotham Greens. “Today, our ambitions and footprint are outgrowing our roots in the best way, and we’re humbled to receive this funding from new and existing investors to continue our national expansion in order to reach our goal of delivering Gotham Greens fresh produce within a day’s drive from our greenhouses to 90% of consumers across the US.
“With increasing climate and supply chain related issues facing our food system, it’s more important than ever to bring innovative farming solutions that grow high-quality produce while using fewer precious natural resources. Gotham Greens is growing fast, and we look forward to bringing our brand to new markets in the coming months.”
Gotham Greens’ portfolio includes leafy greens and herbs, refrigerated salad dressings, dips and cooking sauces. Products are sold in more than 3,000 grocery stores nationwide, including Whole Foods Market, Kroger, Albertsons, Sprouts Farmers Market and The Fresh Market. The company achieved 26% year-over-year growth in the leafy greens category over the past year, according to Nielsen data.
The Series E funding round was led by new investors BMO Impact Investment Fund and Ares Management funds, with participation from new investors Commonfund, RockCreek and Kimco Realty Corp. and existing investors Manna Tree Partners and The Silverman Group.
“The Gotham Greens management team has a demonstrated track record of successful execution, having developed a distributed network of greenhouse facilities with near national reach while producing positive facility level unit economics, a key differentiator in the indoor farming space,” said Marc Khouzami, managing director, BMO Impact Investment Fund, a sustainability-focused investment fund of the Bank of Montreal. “BMO IIF is excited to be partnering with Gotham Greens on the next stage of the company’s growth, as they continue to expand their market share and solidify their position as a leading indoor farming operator.”
The proximity of Gotham Greens’ farms to major cities reduces transportation and improves product quality and shelf life, according to the company. Its growing systems require up to 95% less water and 97% less land compared to conventional farming.“Ares is excited to support Gotham Greens’ plans to expand its leadership within the fast-growing controlled environment agriculture sector,” said Mike Roth, partner in the Ares Infrastructure Opportunities strategy. “Through its innovative approach to food production, Gotham Greens has built a resilient business model that also drives positive environmental and social impact within its communities. We look forward to collaborating with the Gotham Greens team as we continue to advance our commitment to support sustainable climate infrastructure while seeking to deliver attractive returns for our investors.”