Walmart invests in indoor vertical farming start-up Plenty

Walmart is making an investment in the trendy and fast-growing “agritech” industry that allows for pesticide-free, fresh produce year-round.

Walmart has signed an agreement to invest in Plenty, an indoor vertical farming company, as part of  a $400M Series E funding round for Plenty. The retail giant didn’t disclose the amount of investment but said that as part of the investment Walmart will join Plenty’s board.

As part of a long-term commercial agreement, Walmart will source Plenty’s leafy greens for its 250 California stores from Plenty’s Compton (Calif.) farm beginning later this year. Walmart said it is the first large U.S. retailer to significantly invest in vertical farming.

Together, Walmart and Plenty said they will work collaboratively to create a new, market-leading product category in vertical farming by delivering the freshness and quality that Walmart customers expect, year-round.

“We believe Plenty is a proven leader in a new era of agriculture, one that offers pesticide-free, peak-flavor produce to shoppers every day of the year,” said Charles Redfield, chief merchandising officer, Walmart U.S. “This partnership not only accelerates agricultural innovation, but reinforces our commitment to sustainability, by delivering a new category of fresh that is good for people and the planet.”

Plenty said its farming technology platform delivers pesticide-free produce that tastes like it was picked fresh from the garden, all year long. According to the company, its indoor farming architecture differs from greenhouses and other indoor farms by combining engineering, software and sustainable crop science to grow multiple crops on one platform, at unprecedented speed. Also, by building their farms closer to the consumer, Plenty said it helps reduce transportation and food waste, keeping items fresher for longer in 100% recyclable product packaging.

"Plenty’s unique farming system unlocks industry-leading crop versatility and unit economics by enabling indoor growing year round,” said Arama Kukutai, Plenty CEO. "Our farms can be sited anywhere allowing us to put fresh fruits, greens and vegetables on shelf at all times, at speed, for maximum freshness. As a long-time market leader in retail innovation, Walmart is an ideal partner to test and scale access to our quality produce for their customers. This is a game-changer for the agritech industry.”