In a year marked by uncertainty for vertical farming, Oishii has defied the odds by successfully closing a Series B financing round at an impressive $150 million. The round drew late-stage support from new investors like climate tech fund Resilience Reserve—co-founded by TED Head Chris Anderson and entrepreneur Rob Reid—and Japanese venture firm Miyako Capital, alongside longstanding backers such as NTT, Bloom8, McWin Capital Partners, and Mizuho Bank.
Oishii initially announced a $134 million Series B raise in February 2024. However, continued enthusiasm from investors led to an additional $16 million before the round closed, signaling sustained confidence in Oishii’s potential to reshape the food system through cutting-edge vertical farming. For an industry that has seen its share of setbacks, this development represents not only a financial milestone for Oishii but also a testament to the resilience and adaptability of the vertical farming model.
A Model That Stands Out
Founded in 2018 by Hiroki Koga and his team, Oishii has built its reputation on delivering premium-quality produce, starting with its flagship product, the Koyo Berry. These pesticide-free, non-GMO strawberries are cultivated in precise indoor environments designed to replicate the optimal conditions of Japanese alpine regions. The result is a berry so sweet and aromatic that it has garnered rave reviews from chefs and consumers alike.
This latest injection of capital will fuel Oishii’s ambitious expansion plans, which include increasing its production capacity, extending its retail reach, and bringing its berries to more consumers across the U.S. The company’s entry into the Chicago market marks a significant milestone. Starting this week, Koyo Berries will be available at Whole Foods Market locations in the greater Chicago area. The fruit has also found its way into the kitchens of Michelin-starred Chicago restaurants Omakase Yume and Esmé, as well as Sawada Coffee, further embedding itself in the city’s vibrant culinary scene.
Looking ahead, Oishii plans to expand into new regions, with its products set to appear at Harris Teeter locations across Washington, D.C., Maryland, and Virginia this fall. The brand’s reach will also extend to Wakefern-affiliated retailers in the Tri-State area before the end of the year.
While Oishii’s premium strawberries remain the heart of its offerings, the company is actively diversifying its portfolio. Earlier this year, Oishii introduced the Rubī Tomato, a variety celebrated for its exceptional sweetness and umami flavor, marking the company’s first foray beyond berries. Looking ahead, Oishii plans to expand its range further by cultivating high-value crops like melons. These new offerings not only diversify Oishii’s product line but also position the company to meet the growing demand for sustainably grown, pesticide-free, premium produce.
To support this expansion, Oishii is making significant investments in research and development. Breeding programs and automation are central to these efforts, aimed at improving crop quality and maximizing production efficiency. Additionally, the company is exploring renewable energy solutions, such as solar power, to reduce costs and minimize its environmental footprint.
Resilience in the Face of Industry Headwinds
Oishii’s success comes at a pivotal time for the vertical farming industry. While the sector initially captivated investors with promises of sustainable, hyper-local agriculture, it has since faced significant challenges. High-profile companies like AppHarvest and Kalera have struggled to balance the steep costs of indoor farming with profitability, and some have filed for bankruptcy. Even Bowery Farming, once a darling of the space, has had to shut down operations.
The setbacks have prompted discussions around “Vertical Farming 2.0,” a term used to describe the industry’s shift toward greater operational efficiency and market alignment. Companies are now focusing on leaner systems, diversified product lines, and strategic market entry—an approach that Oishii has seemingly perfected.
“We believe vertical farming is the ticket to a sweeter future, and this latest round of funding signals that others embrace our vision for a world where food is more accessible,” said Hiroki Koga, CEO and Co-Founder of Oishii. This optimism is shared by investors like Chris Anderson of Resilience Reserve, who noted, “Oishii is not just delivering delicious produce but pioneering an extraordinary model that accelerates agricultural innovation at breakneck speed.”
Redefining Growth in a Nascent Industry
What sets Oishii apart from many of its peers is its focus on quality over quantity. While some vertical farming companies have struggled to compete with traditional agriculture on cost, Oishii has cultivated a premium brand that commands a higher price point. Its ability to scale this model while maintaining impeccable standards is a key reason investors remain bullish on its future.
Moreover, Oishii’s approach addresses a pressing need in the global food system: climate resilience. By producing high-quality crops in controlled environments, the company reduces reliance on unpredictable weather patterns and minimizes its carbon footprint by growing food closer to urban centers.
As the vertical farming industry grapples with the realities of scaling operations and delivering on its promises, Oishii’s story is a bright spot—a demonstration that with the right strategy, innovation, and market positioning, the future of agriculture can indeed be grown indoors.
For the food innovation ecosystem watching this space, Oishii offers a case study in resilience and ingenuity. With $150 million in new funding and an expanding footprint, the company is proving that vertical farming’s potential is as sweet as its Koyo Berries.
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