Gotham Greens raises $310M for national greenhouse expansion, acquires FresH20 Growers

New York-based indoor farming company Gotham Greens is poised to rapidly expand its national network of greenhouses, raising more than $310 million in new capital to bring the company’s total financing to $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, a sustainability-focused investment fund of the Bank of Montreal, and Ares Management funds. The Series E round was joined by additional new investors, including Commonfund, RockCreek and Kimco Realty Corp., along with key existing investors, including Manna Tree Partners and The Silverman Group.  

A Certified B Corporation, Gotham Greens operates a network of high-tech hydroponic greenhouses in North America. The company’s product portfolio includes greenhouse-grown leafy greens and herbs, along with a line of refrigerated salad dressings, dips and cooking sauces.  

The company 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 U.S. through channel and geographic market expansion, increased operational capacity, and new product development, according to a news release.

“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 CEO 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 U.S.

“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,” Puri continued. “Gotham Greens is growing fast, and we look forward to bringing our brand to new markets in the coming months.” 

The Series E capital raise will support Gotham Greens’ new greenhouse projects currently under construction in Seagoville, Texas; Monroe, Ga.; and Windsor, Colo., as well as the expansion of its existing greenhouses in Chicago and Providence, R.I. The company said the funding will also support future projects and acquisitions in other regions across the U.S.  

By 2023, Gotham Greens will own and operate 13 high-tech, climate-controlled hydroponic greenhouses, totaling more than 40 acres, or 1.8 million square feet, across nine states. The greenhouse expansion projects join Gotham Greens’ existing greenhouse farms in New York, Rhode Island, Maryland, Illinois, Colorado and California.

Gotham Greens says the new greenhouses allow it to continue serving many of the country’s largest grocery retailers, which continue to see a steady increase in consumer demand for greenhouse-grown produce.  

Gotham doubles production capacity

Gotham Greens also recently completed the acquisition of FresH2O Growers Inc., a 540,000-square-foot hydroponic greenhouse grower in Stevensburg, Va. Located 50 miles southwest of Washington, D.C., FresH2O leafy green salad products are sold in grocery stores across 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 have admired Gotham Greens’ outstanding track record of success in the industry and being  exceptional growers, and there was no better choice in the [controlled environment agriculture] industry to continue what we built in Virginia,” said  Joe Van Wingerden, former owner of FresH2O Growers Inc. “Gotham Greens and FresH2O shared a desire to advance greenhouse agriculture and to bring more fresh, local and sustainably grown produce to consumers  across the country, and we are confident they will continue to service our customers with high-quality, longer-lasting leafy greens and other exciting innovations in the years to come.” 

Following more than a decade in operation, Gotham Greens continues to grow double digits, achieving 26% year-over-year growth in the leafy greens category alone, said the company.

The company says its national and regional retail partnerships continue to grow with key accounts, including Whole Foods Market, The Kroger Co., Albertsons Cos., Sprouts Farmers Market, The Fresh Market, AmazonFresh, FreshDirect and more. Gotham Greens products are available in more than 3,000 grocery stores nationwide. 

“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 of BMO Impact Investment Fund. “BMO Impact Investment Fund 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.” 

Gotham Greens officials say they are purposefully expanding the company's operations to provide sustainable supply chain solutions to its diverse retail and foodservice customers. The Colorado River is rapidly drying, creating a water crisis in seven states, including California and Arizona, which collectively provide 98% of leafy greens grown 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 being in severe or extreme drought, said the company. By using hydroponic growing systems in renewable, electricity-powered greenhouses, Gotham Greens says its farms use up to 95% less water and 97% less land compared to conventional farming.

The proximity of Gotham Greens’ greenhouses to key metropolitan markets also eliminates the need for long-distance refrigerated transportation while improving product quality and shelf life, and ultimately reducing food waste, the company said.