Gotham Greens expands its local greenhouses with $87M in funding

7 Jan 2021

Indoor greenhouse company Gotham Greens raised $87 million in a Series D round led by Manna Tree, bringing its total funding to $130 million while also doubling its revenue in the past year. Retail volume growth has jumped 80% year over year for the company’s lettuces, herbs, pestos and salad dressings.

In addition to more sales, the New York greens company has expanded its geographical footprint. In the past 12 months, the company opened greenhouses in Chicago, Providence, R.I., Baltimore and Denver, and it is now selling its products in over 2,000 retail locations across 40 states. With its new funding, the company plans to further accelerate its output in an effort to decentralize food production and expand access to its products across the United States.

Gotham Greens expands its local greenhouses with $87M in funding
Image Courtesy of Gotham Greens

As consumers move toward more locally-grown, healthier food, indoor greenhouses have received an explosion in funding. This year alone, Revol Greens raised $68 million, BrightFarms raised $100 million and AppHarvest announced plans to go public. From October to December, investors dumped $1 billion into the hyped indoor greenhouse industry, according to Forbes.

Within the space, Gotham Greens represents only 1% of sales with an annual output of 35 million heads of lettuce per year. But lettuce is a popular and valuable crop. In 2017, the leafy green had a farm gate value of over $2.5 billion in the United States, according to the United States Department of Agriculture. It is also a crop that has been plagued with foodborne illness and criticism over the environmental impact of its water usage in recent years.

Indoor greenhouses address these issues as they use significantly less water than traditional field agriculture and they are also self-contained environments that allow for increased control of inputs and outputs that can contain potentially harmful bacteria. Furthermore, the locally stationed greenhouses have increased in appeal as the pandemic has caused instability and uncertainty in supply chains worldwide. These circumstances have created the perfect storm for the expansion of these greens growing businesses.

"The pandemic has revealed flaws in America's food supply chain system, particularly in the produce category, and new leaders and innovators need to emerge to ensure a stable food supply for the future,” said Brent Drever, Co-Founder and President of Manna Tree in a statement.

Even when the pandemic subsides, locally-produced agriculture that is less impactful on the environment is likely to retain its popularity. The World Economic Forum predicts that the world will require a 50% to 100% increase in food production by 2050 to feed people. Accomplishing this will require a shift in the food ecosystem, which may be led by these greenhouses that promote accessibility and functionality alongside sustainability.

Related news

Singapore becomes first country to approve lab-grown meat

Singapore becomes first country to approve lab-grown meat

4 Jan 2021

The Singapore Food Agency, the city state’s regulatory body for food, approved San Francisco startup Eat Just’s cell-based meat chicken product, paving the way for its sale in the country.

Read more 
Abbott launches infant formula with immune component

Abbott launches infant formula with immune component

10 Dec 2020

Infant nutrition company Abbott Nutrition launched its new Similac line Pro-Advance which is its “closest formulation to breast milk” and includes added 2’-FL HMO prebiotic for infant immune support. The company is launching this product in Canada wher...

Read more 
Terra Kaffe closes funding for single-serve, podless espresso machine

Terra Kaffe closes funding for single-serve, podless espresso machine

1 Dec 2020

Superautomatic espresso maker Terra Kaffee closed a $4 million funding round with the New York-based venture capital fund The Seed Lab, bringing its total funding to just shy of $5 million since its debut in 2019.

Read more 
Former Walmart alumnus brings AI to trucking, minimizing spoiled produce

Former Walmart alumnus brings AI to trucking, minimizing spoiled produce

26 Nov 2020

The former Walmart executive Syed Aman has moved on in his logistics career and is now the cofounder and CEO of HWY Haul, a company that professes a goal of streamlining the business of delivering produce to retailers while also reducing food waste.

Read more 
Cham Foods releases pulse and grain-based instant meals

Cham Foods releases pulse and grain-based instant meals

24 Nov 2020

Israeli based Cham Foods has engineered a line of dry, ready-to-eat pulse- and grain-based instant meals. These new instant meals and soups contain legumes and grains that when hot water is added retain the shape and texture and take only minutes to ma...

Read more 
Israeli cell-based meat company Meat Tech 3D files for U.S. IPO

Israeli cell-based meat company Meat Tech 3D files for U.S. IPO

12 Nov 2020

Israeli cell-based meat company, Meat-Tech 3D, is a relative newcomer to the industry but is making up for lost time with a flurry of activity. Most recently, the company filed its paperwork with the U.S. Securities and Exchange Commission to begin the...

Read more 
Coca-Cola reveals its new paper bottle prototype

Coca-Cola reveals its new paper bottle prototype

11 Nov 2020

Atlanta-based beverage company Coca-Cola announced that it is testing a paper bottle prototype this month for both still and carbonated beverages. While this prototype will be tested in limited markets, Coca-Cola said that it is “too early” to specific...

Read more 
Plant-based food maker Alpha Foods launches DTC platform

Plant-based food maker Alpha Foods launches DTC platform

10 Nov 2020

California-based Alpha Foods launched its direct-to-consumer (DTC) platform in the U.S. to take advantage of the growing market for plant-based and e-commerce delivery options. The company's products will also continue to be sold at brick and mortar re...

Read more 
Tesco’s new incubator program heavily features plant-based companies

Tesco’s new incubator program heavily features plant-based companies

30 Oct 2020

Tesco is in its fourth year of hosting an incubator program for startup consumer packaged brands, and this year, the cohort features a substantial list of plant-based brands that will receive institutional support from the supermarket chain and its pan...

Read more 
Walmart and Flipkart invest $30M in Indian e-commerce platform

Walmart and Flipkart invest $30M in Indian e-commerce platform

27 Oct 2020

The U.S. retail giant Walmart and India’s grocery e-commerce company Flipkart (which is majority-owned by Walmart) invested for the second time this year in the Indian delivery startup Ninjacart. Although the companies did not disclose their financial ...

Read more