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. According to a person familiar with the matter, Plenty is negotiating to raise an additional $125 million as part of a recapitalization effort. The new deal would value the company’s existing shares at less than $15 million, compared to its previous valuation of $1.9 billion.
The company recently appointed Daniel Malech, former senior vice president of strategy and general counsel, as interim chief executive officer following the exit of CEO Arama Kukutai. Plenty is also revising its business strategy to focus 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 round, with participation from SoftBank’s Vision Fund and Walmart Inc.
The financing discussions are ongoing and could potentially fall through. Representatives from Plenty, SoftBank, Walmart, and One Madison Group declined to comment.
Plenty pivots to strawberry farming
This strategic pivot and recapitalization come amid broader challenges in the indoor farming sector. Recently, Bowery Farming, once valued at $2.3 billion, ceased operations, and companies like AeroFarms, Kalera, and AppHarvest have filed for bankruptcy. Founded a decade ago, Plenty has sought to revolutionize the farming industry by using less land and water to produce food and mitigate the effects of climate change.
In 2022, the company raised $400 million in a Series E funding round and announced plans to build the world’s largest indoor farming facility in Virginia. The facility, valued at $300 million, aimed to grow multiple crops with robotic-assisted harvesting. However, in a recent shift, Plenty announced it would close its leafy vegetable factory in Compton, California, due to rising operational costs, directing its focus solely to strawberry production.
The company also partnered with a unit of United Arab Emirates’ Alpha Dhabi Holding PJSC to develop Abu Dhabi’s first indoor vertical farm, a $136 million project expected to yield over 2 million kilograms of strawberries annually by 2026. This strategic repositioning marks a new chapter for Plenty as it navigates the evolving landscape of sustainable agricultural technology.
