Vertical farm operator GrowUp has secured £38m from investment firm Generate Capital to help the business meet growing demand for its ready-to-eat salads.
The cash will help GrowUp expand capacity at its vertical farm in Kent, support the Unbeleafable and Fresh Leaf Co brands, and drive R&D at the Leaf Lab site in Cambridge.
It extends GrowUp’s existing partnership with the sustainable investment firm following an initial financing in 2021, to help the company prove its energy-efficient growing system and start converting a five-acre brownfield site into the equivalent of 1,000 acres of grade one farmland in Kent.
“Consumers want UK-grown, sustainable, longer-lasting leaves – grown without pesticides,” said CEO Marcus Whately. “With this further investment, we can expand production to meet demand and continue to transform UK food production.”
Founded by Kate Hofman and Tom Webster in 2013, the B Corp business was the first vertical farm to supply major UK supermarkets with bagged salad brands following the launch of Fresh Leaf Co into Iceland and Spar, and the Unbeleafable range into Tesco.
The salads are grown, harvested and packed all year round at the Kent vertical farm, powered by 100% renewable energy, using electricity and low-grade heat from the bioenergy plant next door.
When the farm in Kent is fully operational, the site will be able to produce more than one million bags per week, equating to between 2.5% and 3% of the UK’s salad supply.
“We’ve been growing for over 11 years now,” Whately added. “We’ve come a long way with Generate Capital’s support, since Kate Hofman and Tom Webster set up their first vertical farm in 2013, supplying salad leaves to London markets and restaurants.
“With Generate Capital’s support, we have proved vertically farmed salads are sustainable, cost-competitive and commercially viable, as well as tasty, healthy and long-lasting. Together we can unlock a new salad category and meet growing consumer demand.”
Generate Capital CEO and co-founder Scott Jacobs said: “GrowUp is one of the UK’s most exciting and innovative vertical farming operations, experiencing a nearly 800% sales increase year over year.
“Their ability to quickly earn the trust of the UK’s largest retailers shows the appeal of their product lines, the strength of their team, and their ability to meet rising consumer demand for healthy, locally grown food.
“We look forward to working with them to keep accelerating the decarbonisation of the food system by providing nutritious, affordable and sustainable greens to UK consumers and food manufacturers.”
GrowUp has now raised more than £100m in investment over the past 11 years.
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