U.S. start-up Agrify eyes Nasdaq IPO amid indoor farming boom

U.S. start-up Agrify eyes Nasdaq IPO amid indoor farming boom

Staff Writer
Staff Writer
Pinduoduo Content Team
January 22, 2021

Agrify, a Burlington, MA-based startup that provides hardware and software for indoor farming, plans to raise $25 million in a Nasdaq listing, joining a growing number of agritech companies that went public recently.

The company claims to differentiate itself with a bundled solution of equipment, software, and services that is optimized for vertical and precision farming. Revenue mainly comes from core hardware products, the Agrify Vertical Farming Unit, as well as facility build-outs.

Agrify's vertical farming units. Source: Agrify

New ventures and well-established agricultural companies are expanding their presence in indoor farming, which doesn't require pesticides and consumes less water than traditional open-field farming. It’s also in line with increasing consumer demand for non-GMO (genetically modified organism) food. On the flip side, vertical farming will have to get a lot cheaper to deliver on its lofty aspirations because it currently consumes much more energy than traditional methods.

Agrify’s solution could be used to help indoor growers of salad greens, microgreens, herbs, other leafy greens, vine vegetables and berries maximize yields, improve crop quality and consistency, and decrease production costs over time, the company said in its prospectus.

Chart shows all of the crops grown across the indoor vertical farms that participated in the 2019 Global CEA Census

“Our integrated solution allows customers to provide consistent quality crops, and also help them to maximize profits,” said Raymond Chang, founder and CEO of the company, in an interview posted on Agrify’s website. “It’s kind of like Lego pieces but it’s all pre-assembled so all you have to do is a fast deployment.”

Agrify was founded in 2016 and booked $9 million in revenue for the 12 months ended September 30, 2020. Proceeds will mainly be used to fund R&D, sales and marketing, it said.