Vertical farming company Oishii has successfully closed an additional round of Series B funding, raising a total of $150 million. This latest financial boost comes as the company continues to attract significant interest from investors, a notable achievement given the challenging landscape many vertical farming firms have faced recently. The funding round saw participation from new investors, including the climate tech fund Resilience Reserve and Japanese venture firm Miyako Capital, alongside existing backers such as NTT, Bloom8, McWin Capital Partners, Mizuho Bank, and the Japan Green Investment Corporation for Carbon Neutrality (JICN).
Oishii, which has made a name for itself by cultivating premium strawberries in its vertical farm located in New Jersey, is gearing up for its first international expansion with a new facility in Tokyo. This move marks a significant step in the company’s growth strategy, as it aims to broaden its footprint beyond the United States. The new center, dubbed the Open Innovation Center, is intended to foster technological advancements within the vertical farming sector, although further details regarding its operations are still pending.
The latest funding comes on the heels of Oishii’s previous raise of $134 million earlier in 2024, underscoring a consistent trend of investor confidence in the company. CEO and co-founder Hiroki Koga expressed optimism about the funding, stating, “This latest round of funding signals that others embrace our vision for a world where food is more accessible, better quality, and above all else, delicious.” This sentiment reflects Oishii’s unique approach in an industry often characterized by a focus on rapid growth and high-volume production. Instead, Oishii prioritizes taste and quality, a strategy that has resonated with consumers and investors alike.
Akira Shimada, president and CEO of NTT, praised Oishii’s commitment to quality over quantity, noting that the company has opted to emphasize flavor rather than merely pursuing short crop cycles and aggressive expansion. This philosophy sets Oishii apart in a market that has seen numerous competitors, including the former unicorn Bowery, struggle with closures and setbacks. Oishii’s steady growth trajectory and its ability to secure additional funding in a turbulent market reflect a strong belief in its business model and operational strategy.
Oishii’s strawberries have gradually become more accessible to consumers, primarily through partnerships with retailers like Whole Foods Market. Currently, the berries are predominantly available in the northeastern and mid-Atlantic regions of the United States, with a recent expansion into Chicago signaling further growth potential. Additionally, the company has diversified its offerings by introducing tomatoes to its product lineup, although strawberries remain the cornerstone of its operations.
As Oishii prepares for its international launch, the implications of this funding and expansion are significant. The company’s approach could serve as a blueprint for other vertical farming ventures, particularly in how it balances quality with growth. By focusing on delivering a superior product rather than simply increasing output, Oishii may well redefine success in the vertical farming industry. With the backing of prominent investors and a clear vision for the future, Oishii is poised to make a lasting impact on how fresh produce is grown and distributed, both domestically and internationally.