An Abu Dhabi-based agriculture technology start-up proclaimed it’s secured $60 million in funding
An Abu Dhabi-based agriculture technology start-up proclaimed it’s secured $60 million in funding to expand its Middle East operations, however same it has been associate with an uphill task attempting to boost capital.
Pure Harvest good Farms grows fruits and vegetables in greenhouses in the United Arab Emirates desert and has partnerships to try and do constantly in the Kingdom of Saudi Arabia and Kuwait.
The harsh Middle East climate makes countries in the region heavily dependent on food imports, and also the Covid-19 pandemic last year brought food security risks to the fore.
“Our pilot in the desert … showed very promising results — the potential for year-round native production at the very prime quality and at an awfully sensible price structure,” CEO and Co-founder Sky Kurtz told CNBC’s “Capital Connection” on Monday. The start-up can use the capital to create its beachhead in Saudi Arabia, he added.
It conjointly has plans to expand its portfolio of products.
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The company raised $50 million via monotheism bonds, also called Sukuk, which are debt instruments that go with jurisprudence law. Kurtz same it had been “quite novel” provided that the region doesn’t have a major venture debt market.
The provision was led by Shuaa Capital associated accommodates Pure Harvest’s longer-term wants for an “aggressive CAPEX program” furthermore as its invasive nature, Kurtz same.
Separately, Sancta Capital LED an equity fundraising spherical in Jan that raised another $10 million, with participation from new and existing investors.
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‘Relatively underfunded’
Despite its success in raising capital, Kurtz said Pure Harvest has secured less funding compared to agriculture school companies in the U.S. and Asia. That’s as a result of the center East venture market is a smaller amount developed, he said.
They are “maturing quickly,” however it’s “still a comparatively emergent market,” he said.
Kurtz acknowledged that having raised $200 million in the capital at the Series A stage is “extremely large” each regionally and globally.
“However, in a trade like ours — it’s very capital intensive — we tend to are still comparatively underfunded,” he said.
He pointed to businesses that love vertical farming firm lots within the U.S., which has raised quite $500 million, consistent with Crunchbase.
“A lot of those firms have secured tons additional capital than we have, nonetheless admittedly, our market want is great,” Kurtz said. “We basically import 80% to 90% of the contemporary fruits and vegetables during this region.”
He is supplementary that Pure Harvest’s capital has been sourced from everywhere the globe and “we’ve had to fight” for it as a result of attracting working capital to the center East is additionally difficult.
“However, I feel that’s dynamic quickly, and clearly we tend to terribly grateful to the partners that we have,” he said.