Key Takeaways:
- Crysp Farms secures $2.25 million in a Pre-Series A funding round.
- Gate Capital leads the investment with additional regional backers.
- The funding is earmarked for regional growth and international contract fulfillment.
- Crysp Farms’ operations contribute to food security and lower greenhouse gas emissions.
- Expansion into Saudi Arabia aligns with Saudi Vision 2030 objectives.
Crysp Farms Raises $2.25 Million in Pre-Series A Funding to Enhance Decentralized Vertical Farming in the GCC
Overview of Crysp Farms’ Funding Achievement
Crysp Farms, a GCC-based innovator in decentralized vertical farming, has completed a $2.25 million Pre-Series A funding round. The round, structured and led by Gate Capital, also includes contributions from investors in the UAE and Saudi Arabia. This financial boost aims to develop further the company’s ‘Farming as a Service’ model, primarily serving hospitality groups, healthcare facilities, restaurants, and hypermarkets.
Purpose of the Investment
The newly acquired funds will expand Crysp Farms’ operations across the GCC region. Additionally, the investment will facilitate the execution of international contracts that the company has secured. The company, known for supplying high-quality produce to venues recognized by Gault&Millau and Michelin, plans to utilize this funding to broaden its market reach.
The Company’s Role in Food Security and Environmental Sustainability
As the region’s sole provider of hyperlocal farming, the company addresses crucial aspects of food security. By offering onsite access to fresh produce, the company aims to reduce the food spoilage rates reported by the FAO, which estimates a loss of 30-40% of total food production before reaching consumers. Furthermore, Crysp Farms’ practices align with the environmental objectives of COP28, as its operations contribute to reducing greenhouse gas emissions.
Expansion Plans and Strategic Partnerships
Crysp Farms is set to initiate new farm projects within prestigious hotels and resorts managed by entities like Hilton Worldwide, Jumeirah Group, and Marriott International. The company has recently expanded to over 20 locations in the UAE and plans further expansions in the Seychelles, Maldives, and Saudi Arabia. The move into Saudi Arabia is particularly strategic, supporting the goals of Saudi Vision 2030 by enhancing local food production capabilities.
Executive Perspectives
Maan Said, CEO and founder of Crysp Farms, emphasized the potential of the investment to scale the business in targeted markets. Munther Hilal, Chief Executive and Founder of Gate Capital remarked on Crysp Farms’ evolution from an innovative agricultural concept to a sustainable investment opportunity with solid unit economics and potential for growth.
Sustainable Farming and Market Impact
The company utilizes controlled environment agriculture and hydroponics to provide a variety of over 130 crops. This method ensures the delivery of fresh produce directly from farm to table. Crysp Farms’ commitment to sustainable farming has been met with client satisfaction, contributing to its consistent growth.
