January is traditionally a quiet month in the indoor ag sector, but this one proved surprisingly perky.  We saw five overseas fundings and tech progress in robobees and new crops.

1. Five overseas firms find funding in January

Following the trend that we’ve seen for some months, there were five funding rounds this month, all of them overseas:

• Agurotech (Amsterdam-based agtech startup) secured €2.25 million (~$2.33 million USD) in a funding round led by Navus Ventures and Rabo Ventures. The company’s AI-driven platform integrates sensor networks to optimize water use for farmers in drought-prone regions. It plans to expand in Southern Europe and North America.
• Farm Credit Canada (Canadian agricultural lender) invested in GoodLeaf Farms (Canada’s largest indoor vertical farm operator) to support its expansion of 280,000 sq ft of production facilities. The partnership aims to strengthen year-round leafy green production, servicing over 2,700 retailers nationwide.
• InGarden (Berlin-based in-home microgreens startup) raised €1.2 million (~$1.24 million USD) to scale its NutriMed™ growing kits, which enable consumers to cultivate nutrient-dense microgreens. The seed extension round will fund organic certification and direct-to-consumer growth.
• Nature Fresh (Ontario-based greenhouse grower) received a minority investment from Manulife Investment Management to advance sustainable tomato and pepper production. The collaboration focuses on R&D for energy-efficient controlled environment agriculture (CEA) systems.
• Scottish Government allocated £17 million (~$21.07 million USD) to establish a vertical farming research hub at the James Hutton Institute. The project will pilot advanced crop breeding and light optimization technologies to boost Scotland’s food security.

2. Robobees take flight at MIT

Our Indoor Ag Buzz Index™ combines the popularity of a range of indoor farm-related phrases in the media into an index.   The index ended the month up, with two interesting tech announcements drawing coverage.

MIT researchers unveiled redesigned robobees capable of hovering for 1,000 seconds (16.7 minutes) – 100x longer than previous models – while weighing less than a paperclip. The bot achieves speeds of 35 cm/s. It performs acrobatic maneuvers like double flips, enabled by optimized wing hinges and soft artificial muscles. Designed for precision pollination in vertical farms, the platform could eventually carry sensors and batteries for autonomous operation. The team aims to extend flight durations beyond 10,000 seconds (~2.8 hours) and refine landing accuracy on flowers.  

Israeli agtech startup Vanilla Vida harvested its first commercial crop of vanilla beans from climate-controlled greenhouses, marking the world’s first large-scale indoor vanilla production. Using precision agriculture, the startup halves maturation time (from 4 years to 2) and boosts vanillin content to over 3% (vs. 1-2% traditionally). Partnerships in Uganda and Israel will expand operations, with a hybrid model curing outdoor-grown beans using proprietary techniques to enhance flavor profiles (e.g., chocolatey or caramel notes). Backed by $15.5 million in funding, the company aims to stabilize vanilla supply chains amid climate volatility.  

3. An IPO and a delisting in the public sector

Our proprietary Indoor Ag Stock Index™ ended the month down 16%  year on year, mostly due to a stronger dollar.  More than 85% of the index’s market cap is in overseas stocks.  The sector saw a delisting and a potential IPO in the month. 

Nature’s Miracle Holding

Nature’s Miracle Holding Inc (NASDAQ: NMHI) received a delisting notice from NASDAQ on February 1, 2025. Its stock closed below the $1.00 minimum bid price for 30 consecutive days. In a press release, the company stated it has requested a hearing before the NASDAQ Hearings Panel to present a plan to regain compliance. This follows NMHI’s recent pivot to electric vehicle (EV) manufacturing through a joint venture in Colombia, which diverges from its core vertical farming operations. The company’s financial filings reveal $12.6 million in net losses for Q3 2024 and dependence on external funding to sustain operations.

Agroz Inc

Agroz Inc., a Malaysia-based vertical farming technology company has filed for a $150 million NASDAQ IPO (ticker: AGZ). It plans to expand its AI-driven tech across Southeast Asia. The company operates two leased vertical farms in Malaysia: a 10,021 sq ft facility in Kota Damansara and a 5,239 sq ft AEON Alpha Angle EduFarm. Its pesticide-free produce is sold through AEON supermarkets and direct sales channels.  

Financially, Agroz reported MYR 48.2 million (~$10.1 million USD) in 2023 revenue from farm design/construction services and produce sales. It incurred a MYR 18.5 million (~$3.9 million USD) net loss. The company holds MYR 22 million (~$4.6 million USD) in short-term debt. IPO proceeds are earmarked for Southeast Asian expansion, AI software development, and partial debt repayment.  

Key risks include a going concern warning from auditors. It cites insufficient cash flow and reliance on IPO funding to sustain operations. This means there is substantial doubt about the company’s ability to continue operating without successful IPO funding. Material weaknesses in financial controls and $5.4 million USD in related-party transactions—including software contracts with a CTO-linked entity—raise governance concerns. The prospectus also highlights dilution risks from outstanding redeemable convertible shares (RCPS) requiring 10% annual dividends.

Disclaimer

Featured image courtesy of Unsplash.

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