In a quiet month for indoor agriculture, we saw three new investment rounds announced in September.  In total, we saw a disappointing $30m raised in the third quarter, compared to $164m in the second quarter.  Revol Greens closed a California facility, and the listed sector added a new Malaysian stock.  During the month, we updated our Insights platform with more than ten new investors in indoor ag.

Vertical Harvest Raises from the Middle East

Vertical Harvest, a vertical hydroponic farming operation founded in 2016, secured an undisclosed strategic investment from Raiven Capital, a Dubai-based global venture capital firm specializing in AI, IoT, and distributed ledger technologies, announced on September 23, 2025.  The company has raised approximately $77 million to date, including an $8.35 million Series A in April 2022 led by Nicoya AB and Raiven Capital (Toronto), a $59.5 million project financing round in April 2024 for its Westbrook, Maine facility, and the recent Dubai-based Raiven Capital investment.

The company currently produces lettuce, basil, microgreens, and tomatoes from its flagship 13,500-square-foot facility. The newer 51,000-square-foot Westbrook facility is designed to produce 2.5 million pounds of fresh leafy greens annually. CEO Nona Yehia noted in April 2024 that bond markets “dried up” three years prior, forcing the company to pursue alternative financing, and acknowledged that “no one is giving a good deal now” in the challenging fundraising environment.

Area 2 Farms Secures $9M to Scale Hyperlocal Farms

Northern Virginia-based vertical farming startup Area 2 Farms secured $9 million in funding led by Reddit co-founder Alexis Ohanian’s Seven Seven Six. Slow Ventures, 468 Capital, and Animo Ventures participated in the round. The round will fuel the company’s plan to build 10 new farms across the United States by 2026. Target cities include Charlotte, Nashville, Miami, Austin, Raleigh-Durham, and Atlanta. Area 2 Farms converts vacant office buildings into soil-based growing facilities. The company serves 400 weekly customers through Community Supported Agriculture subscriptions priced at $35 per week. CEO Oren Falkowitz founded the company in 2020. The startup’s modular farming technology produces organic vegetables in under 5,000 square feet. The Arlington pilot facility has delivered over 20,000 harvests to more than 1,000 customers.

UAE Startup Aydi Raises $7.5M for AI Agronomy Assistant

Dubai-based agritech startup Aydi closed a $7.5 million seed round led by COTU Ventures, Daltex, and Nuwa Capital. Magrabi Agriculture and Foundation Ventures participated in the funding. The capital will accelerate global expansion of Orth. Orth provides real-time insights to farmers using satellite monitoring, predictive analytics, and conversational AI technology. The platform analyzes crop health, soil conditions, and weather patterns. Orth delivers personalized recommendations that optimize yields while reducing water and fertilizer usage. Aydi was founded in 2022 with operations across the UAE, Saudi Arabia, and Egypt. The company has developed partnerships with agricultural cooperatives and government agencies throughout MENA. Aydi plans to expand into Turkey, Pakistan, and Africa. The global precision agriculture market is valued at over $12 billion annually.

M&A, Closures and Growth in September

Minnesota-based greenhouse grower Revol Greens made the “painful” decision to close its Tehachapi, California facility in September. The company issued WARN notices to the remaining 42 staff members. Revol Greens shut down the 62-acre site. The facility included 14 acres of lighted, high-tech lettuce production and 32 acres of semi-closed high-wire greenhouses. The company focuses operations in Texas, Georgia, and Minnesota. Revol Greens operates four greenhouse facilities with 15 million pounds of annual production capacity. The company produces organic and conventional packaged salads. California industrial electricity rates averaged 21.83 cents/kWh in 2025 versus Texas rates of 6.60 cents/kWh. California rates are 187% higher than the national average for industrial users. Key shareholder Equilibrium Capital owns the Tehachapi site and will offer it for lease or sale.

A New Listing in the Public Sector

While some listed stocks continued their pivot to cannabis, a new listing joined the public sector in Malaysia.

Malaysian Agritech Company Agroz Goes Public on Nasdaq

Malaysia-based agritech company Agroz Inc. (NASDAQ: AGRZ) successfully priced its initial public offering at $4.00 per share. The company raised $5 million in gross proceeds with 1.25 million shares offered. Agroz began trading on October 1, 2025. The company operates Malaysia’s largest indoor vertical farm located in a shopping mall. Agroz specializes in vertical farming technologies powered by its proprietary Agroz OS system. The system automates climate control, nutrient delivery, and harvest timing. Agroz has developed AI agents for autonomous farming operations. The technology reduces labor costs by up to 60% compared to traditional farming methods. Yields increase by 300% per square foot. Agroz plans to expand its vertical farming operations across Southeast Asia. The company will develop new crop varieties optimized for controlled environment agriculture systems. VCI Global Limited served as the placement agent.

Agrify Transforms into Cannabis Brand Company RYTHM

Cannabis technology company Agrify Corporation (NASDAQ: AGFY) completed its transformation into a cannabis brand operator. The company acquired the brand portfolio including RYTHM, Dogwalkers, and Beboe from Green Thumb Industries for $50 million. Agrify officially changed its name to RYTHM, Inc. and began trading under ticker “RYM” starting September 2, 2025. Green Thumb entities now hold 49.99% of RYTHM through various financing arrangements. The transaction includes a $45 million senior secured convertible promissory note. Green Thumb’s premium cannabis brands generate over $100 million in annual revenue across 14 states. The brands combine with RYTHM’s operational infrastructure including cultivation facilities and retail dispensaries. Former Agrify’s indoor agriculture equipment business becomes a non-core asset.

Village Farms Approves $10M Share Buyback Program

Greenhouse produce and cannabis grower Village Farms International (NASDAQ: VFF) board unanimously approved a $10 million share repurchase authorization. The program covers up to 5.687 million shares, representing approximately 5% of outstanding common stock. Village Farms expects to close Q3 2025 with approximately $75 million in cash following record EBITDA margins of 28.6%. The British Columbia-based company strategically exited the produce business to focus entirely on cannabis operations.

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Featured image courtesy of Unsplash.

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