These guys just landed $29 million
Steve’s breakdown: Gotham Greens is the client and expansion is the name of the game. To fulfill their goals, they are going to have to get the word out about their produce beyond an Intragram account. That’s your cue . . .
BROOKLYN, NY: New York City-based urban farming startup Gotham Greens on Wednesday announced a new $29 million round of equity funding.
The investment, which closed last month, brings the company’s total equity funding to $45 million, not including bank debt. Gotham Greens has a greenhouse on the roof of the Method soap factory in Chicago’s Pullman area and plans for another nearby.
The funding round was led by the company’s existing investors, including the New Jersey-based Silverman Group, along with a significant new investment from Creadev, a global private equity investment firm controlled by France’s wealthy Mulliez family.
Gotham Greens grows fresh produce in climate-controlled urban greenhouses in close proximity to retailers and food service providers, such as Jewel-Osco and Whole Foods Market.
Growing consumer demand for high-quality locally grown produce has made Gotham Greens’ Brookyln operations a success, prompting expansion into other markets such as Chicago, CEO Viraj Puri said.
The company recently announced plans for a Baltimore greenhouse to serve the mid-Atlantic region, and Puri said the new round of funding would go toward that project, along with others.
Gotham Greens also plans to use the funding to enhance research and development in controlled-environment food production techniques, data science and machine learning, according to a news release.
The company owns and operates a 75,000-square-foot rooftop greenhouse in the Pullman area, which employs about 50 people. It announced plans in February for another $12.5 million, 105,000-square-foot free-standing greenhouse on South Doty Avenue at the former Ryerson industrial site in Pullman. The new facility, which is still under construction, is expected to employ another 60 workers.
“We really wanted to be part of the economic revival of Pullman,” Puri said. “Being urban means making a positive impact in the communities we serve and providing economic and job development.”
The new facility in Pullman will allow Gotham Greens to continue serving the Chicago market and widen distribution across Illinois and neighboring states, he said.
In the past five years, various projects have brought in more than $250 million worth of investment to the formerly industrial, historic neighborhood designated by President Barack Obama in 2015 as Illinois’ first national monument.
Earlier this year, Whole Foods opened a 140,000-square-foot distribution center on 16.5 acres adjacent to the Method soap plant in Pullman, and developers announced plans for a 50-acre complex with 1 million square feet of warehouse space, called Pullman Crossings, to be built this summer along 103rd Street and Woodlawn Avenue.