Plenty Unlimited Inc., a vertical farming pioneer backed by billionaires like Jeff Bezos, is in talks for a new funding round that will significantly reduce the value of existing stockholders’ shares. The company, which has secured almost $1 billion from investors such as Eric Schmidt and SoftBank Group Corp., is discussing raising another $125 million as part of this recapitalization effort. Sources say the new deal would decrease the value of Plenty’s existing shares to less than $15 million.
Previously, investors had valued the company at $1.9 billion, according to PitchBook. In recent weeks, Plenty has installed Daniel Malech as interim CEO following the departure of Arama Kukutai. Malech was previously the company’s senior vice president of strategy and general counsel.
The company is also undergoing a broader strategy shift, focusing exclusively on strawberries, which yield higher profits, rather than a variety of fruits and vegetables. New York investment firm One Madison Group is expected to lead the new financing. SoftBank’s Vision Fund, a longtime investor in Plenty that has invested over $400 million into the company, is also in talks to participate, as is Walmart Inc.
However, the financing is not yet completed and could still fall apart.
Plenty’s funding challenges and valuation decrease
Representatives for SoftBank and Walmart declined to comment, and One Madison Group did not respond to requests for comment.
Plenty’s shifting strategy reflects broader challenges in the indoor farming industry. Recently, Bowery Farming, previously valued at $2.3 billion, halted operations. Before that, companies including AeroFarms, Kalera, and AppHarvest all filed for bankruptcy.
Founded a decade ago, Plenty has been a leader in indoor farming, aiming to use less land and water to grow food while avoiding the impacts of climate-induced extreme weather. In 2022, Plenty raised $400 million in a Series E funding round and announced plans to build the world’s largest indoor farming facility on a 120-acre campus in Virginia. The $300 million facility was designed to grow multiple crops, including leafy greens and tomatoes.
However, the company failed to secure additional funding last year and is now focusing on strawberries, which can be sold at high prices year-round. In December, Plenty announced it would shutter its leafy vegetable factory in Compton, California, due to rising costs. In addition, Plenty has partnered with a unit of United Arab Emirates’ Alpha Dhabi Holding PJSC to develop Abu Dhabi’s first indoor vertical farm, costing over 500 million dirhams ($136 million).
The farm aims to produce more than 2 million kilograms of strawberries annually starting in 2026.
Plenty Unlimited’s New Funding Round
Plenty Unlimited Inc., a leader in vertical farming, is working on a new funding round that could drastically lower the value of its existing stockholders’ shares. The company, which has faced setbacks in securing additional funding, is now focusing on a more specialized approach by concentrating on strawberry production to boost profitability.
This strategic shift reflects the challenges facing the indoor farming industry, with several companies in the space, like Bowery Farming, recently experiencing significant struggles. As Plenty moves forward, its leadership and investor relations will play a crucial role in determining its ability to weather the storm and secure long-term success.
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