Investors have placed an Additional $87 Million into Seed Expansion Plans for Gotham Greens, the Indoor Farming Company launched a Decade ago in Greenpoint, Brooklyn, says Viraj Puri, Co-Founder and Chief Executive of Gotham Greens.
With the Pandemic accelerating Demand for Locally Grown Foods, the Company, on Tuesday, said the additional Financing would help Expand its Concept of Growing Salad Greens in Greenhouses within Major Cities.
"Growing indoors has a role to play in the future of sustainable food production," said Puri. "Even if not for all fresh food, I do believe there are certain types of crops where this will become more prevalent. Investors are recognizing that, and more capital is flowing into the space."
Gotham says it can grow Greens using 5% of the Water and 3% of the Land used by Traditional Farms. By being near the Stores it Supplies, Gotham's Food reaches Shelves Fresher and with Less of a Carbon Footprint.
Along with the Greenpoint Facility, the Company grows Veggies from a 20,000-square-foot Greenhouse on Top of Whole Foods in Gowanus and from a 60,000-square-foot Greenhouse in Jamaica, Queens.
The Firm has steadily Expanded Nationwide since Launching in Chicago in 2015. Gotham Greens also are grown in: Baltimore; Denver; and Providence, Rhode Island.
That adds up to about 500,000 square feet of Hydroponic Greenhouses across Five U.S. States, with nearly 400 Employees. Customers include: AmazonFresh; FreshDirect; ShopRite; Target; and Whole Foods.
Puri said the Expansion would include a Mix of New Facilities in Existing Markets and Launches in New U.S. Cities. The Company will Hire to fill Corporate Roles in its Gowanus Offices.
While Prices for Office and Retail are Down in Most Parts of New York City, Puri said it's Unlikely the Company would be able to pounce on those Prices. Most of Gotham Green's Growing Facilities are Connected to Industrial Properties, a Sector that has Not seen Price Declines Locally.
The Company can likely count on a Strong Market for whatever more it can Grow through the Expansion. The Traditional Food Supply for Grocers, reliant on Greens from Arizona and California, was pushed to the brink by Covid-19 in March and April. That Opened the opportunity for Companies such as Gotham Greens to reach New Local Stores desperate for Fresh Food. Gotham said its Sales had climbed 80% year over year through September.
The Company is Challenged in the Indoor Farming Market by Startups such as AeroFarms and Bowery Farming, which grow Herbs and Salad Greens in Large Warehouses using Hydroponics. The Companies, which have Large Growing Facilities in New Jersey, have raised a Combined $250 Million from Investors to help Expand and Feed the New York Market.
But there's plenty of Demand to go around, Puri said, with Indoor Farming representing a Tiny fraction of U.S. Leafy Green Production. "This is not spurred by anything other than our own plan we have been working toward," Puri said. "We have a proven track record of operating profitable greenhouse facilities."
The $87 Million includes $45 Million in Debt Financing, which Puri said was Preferable to the Company because it will allow it to Expand without Giving-Up further Equity.
The Lead Investor is Manna Tree, a Colorado-based Private-Equity Firm.
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