Infarm

Infarm was a Berlin-based vertical farming company founded in 2013 that grew produce in modular, IoT-connected farms placed in retail stores and urban spaces.⁵⁶⁸ The company raised $604.5 million from investors including Qatar Investment Authority and Lightrock, reaching a valuation of over $1 billion in December 2021.^5121316 In 2023, Infarm declared insolvency in major European markets and its Dutch arm was declared bankrupt, after laying off more than half of its workforce in November 2022.¹²⁵¹⁶

Timeline

Money raised

Infarm raised a $100 million Series B round in 2019.⁸¹⁶ In September 2020, Infarm raised $170 million in the first close of a Series C funding round.¹⁵¹⁶ In March 2021, Infarm raised an additional $100 million from existing investors.¹⁷ In December 2021, Infarm secured a $200 million Series D investment at a valuation of over $1 billion.^9121316 Infarm's total funding reached $604.5 million, according to AgFunderNews.⁵¹⁶ In December 2023, Infarm's assets were sold for about €40 million to a new entity.⁶¹⁶

Investors named in the sources: Qatar Investment Authority⁵¹²¹⁶, Lightrock⁵¹⁶, Astanor¹⁶, Balderton¹⁸.

What happened

Infarm was founded in Berlin, Germany in 2013 by Osnat Michaeli and brothers Erez and Guy Galonska.⁵¹⁸ The company developed modular, IoT-connected vertical farms that could be placed inside urban spaces like supermarkets, restaurants, and warehouses.⁶⁸ Infarm's farms used hydroponics and cloud-connected software to monitor growing elements like light, air, and nutrients.⁸ The company grew mainly leafy greens, though it later said it had successfully trialed wheat indoors.⁵ Infarm placed farms in more than 1,800 retail stores across 11 countries.⁵

In November 2019, Infarm partnered with Kroger to install modular vertical farms in 15 QFC stores, starting with two locations in Bellevue and Kirkland, Washington.⁸ Infarm raised a $100 million Series B round in 2019.⁸¹⁶ In September 2020, Infarm raised $170 million in the first close of a Series C funding round.¹⁵¹⁶ In March 2021, Infarm raised an additional $100 million from existing investors to strengthen its presence in existing markets, hire more people, and venture into new crops including mushrooms, tomatoes, and chillies.¹⁷ In December 2021, Infarm secured a $200 million Series D investment at a valuation of over $1 billion, becoming Europe's first vertical farming unicorn.^9121316

The Series D round included existing and new investors, including the Qatar Investment Authority.¹² In November 2022, Infarm announced it would lay off more than half of its workforce, around 500 employees.⁵ The layoffs were attributed to escalating energy prices and tough financial markets.⁵ Infarm said energy prices had doubled across Europe, putting additional pressure on its business and seriously impacting its cost of production.⁵ The company also cited supply chain issues and rising costs for materials.⁵

Infarm announced a strategy shift to focus on markets with a clear path to profitability in 2023.¹⁵ The company consolidated its Growing Centres in core markets of Frankfurt, Germany; Copenhagen, Denmark; and Toronto, Canada.⁵ Infarm said it could achieve profitability in these markets in 2023.⁵ The company also planned to open a Growing Centre in Baltimore, Maryland in the US.¹⁵ Infarm considered downsizing operations in the UK, France, and the Netherlands, and put operations in Japan under review.⁵

In February 2023, Infarm closed operations in the UK, France, the Netherlands, and Japan.¹ On April 6, 2023, Infarm shut down operations in Frankfurt, Germany.¹ On April 18, 2023, Infarm closed its Copenhagen, Denmark operations.¹ Infarm said it was focusing on markets that have a clear path to profitability in 2023.¹ Infarm said the bankruptcy was not impacting its current restructure in which the company was focusing on markets where profitability was likely attainable.⁶

Multiple industry sources said Infarm raised $40 million – $50 million in new funds from Qatar.⁶ In October 2023, Infarm entered administration, a legal process managed by licensed insolvency practitioners.⁶ On October 26, 2023, KSV filed Infarm Canada NOI; creditors claimed C$56.7 million.⁶ In December 2023, Infarm's assets were sold for about €40 million to a new entity, Infarm Technologies Limited.⁶¹⁶ The new Infarm is legally headquartered in Britain but operates out of Canada, where it produces kosher salad greens for the North American market.¹⁶

Infarm Technologies sells kosher, insect-free salad leaves from Toronto, targeting Jewish consumers.⁶ In May 2024, a lawsuit was filed against Hanaco cofounder Pasha Romanovski over first-Infarm investments.⁶ On October 17, 2024, Infarm's new entity moved to appoint administrators.⁶ On January 6, 2025, Sobeys expanded Infarm to 16 Ontario stores.⁶ Sobeys planned Calgary, Edmonton, and Halifax rollouts, widening Infarm’s Canadian distribution.⁶

Infarm's asset sale for about €40 million cut legacy baggage and reset operations.⁶ Sobeys concentration creates existential risk; Toronto sales depend on one retailer’s ongoing rollout.⁶

Legal outcomes

• filedKSV filed Infarm Canada NOI on October 26, 2023; creditors claimed C$56.7 million.⁶
• filedA lawsuit was filed against Hanaco cofounder Pasha Romanovski over first-Infarm investments in May 2024.⁶

Where the founders are now

Erez Galonska co-founded Infarm and was its CEO through the unicorn years.¹⁸ His open LinkedIn describes him as having co-founded and led Infarm and lists Co-founder & CEO, Liminal, from January 2025.¹⁸

Sources

1. Brief: Infarm closes Copenhagen operations amid ongoing ‘strategy shift’ & vertical farming consolidation, AgFunderNews, 2023-04-18
2. Dutch arm of vertical farming startup Infarm declared bankrupt, Sifted
5. Brief: Vertical farm network InFarm to lay off 'more than half' of workforce, downsize operations, AgFunderNews, 2022-11-29
6. Jobs and Employment at infarm | Simplify, Simplify Jobs, 2 days ago
8. Kroger Partners with Infarm to Grow Greens in Grocery Stores – The Spoon, thespoon.tech, Nov 19, 20
9. The new heights of vertical farming, illuminem.com, Apr 11, 20
12. This is Europe's first vertical farming unicorn valued at over $1 billion by investors — TFN, Tech Funding News, 2021-12-17
13. Daily Deal Round Up: December 17, 2021, globalventuring.com, Dec 17, 20
15. Infarm – Indoor Urban Farming GmbH. (9/17/20). "Press Release ..., life-sciences-europe.com
16. Progress report: Where are vertical farming’s biggest leafy green growers now?, seemorgrain.com
17. VMG Partners Raise $850M, 1B Tons of Food Wasted in 2019 + More | Food+Tech Connect, Food+Tech Connect, 2021-03-11
18. Erez Galonska — Infarm, Silicon Valley Investclub

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