Oishii, the vertical farming company known for its luxury strawberries, has secured an additional US$16 million in funding, bringing its total raised to US$150 million. The company is using this investment to extend its reach across the U.S. and into international markets.
Investment Boosts Expansion Plans
In February 2024, Oishii announced a US$134 million fundraising round. Due to ongoing interest from investors, the company successfully raised more capital, enhancing its expansion efforts. This new funding will support its efforts to enter new markets, including the Chicago area and Tokyo, Japan, where the company is preparing to open its first international facility.
The latest round was led by Resilience Reserve, a climate tech fund co-founded by Chris Anderson, the founder of TED Talks, and entrepreneur Rob Reid. Japanese venture firm Miyako Capital also participated in the funding just before the closing.
New Market Presence and Restaurant Partnerships
Oishii expands its products, are being introduced to new retail locations. In Chicago, the company’s strawberries are now available at Whole Foods, as well as on the menus of several Michelin-starred restaurants, including Omakase Yume and Esme. Artisanal coffee shop Sawada Coffee will also feature Oishii strawberries. The company is also making its products available to Harris Teeter stores in the Washington, D.C., metropolitan area and to Wakefern brands in the Tri-State region by the end of this year.
“Despite challenges in the industry, we’re confident about the company’s prospects as we expand into new markets.”
Investment in Product Development and Smart Farm Expansion
The newly raised funds will also support Oishii’s ongoing product expansion and research. In June 2024, the company opened a 237,500 square-foot smart farm in Phillipsburg, New Jersey. The farm features a solar field, robotics, and a purification system for growing indoor produce, with the capacity to increase output by 20 times.
The company is also planning to open its Open Innovation Center in Tokyo, which will focus on advancing technological innovations in vertical farming.
High-Quality Produce and Growing Recognition
Oishii is best known for its premium strawberries, particularly its Koyo and Omakase berries, which are sold in distinctive packaging resembling a box of chocolates. The berries are available at Whole Foods and other retailers for approximately US$10 per 8-count. The company also markets Rubi Tomatoes, expanding its product line within the indoor farming space.
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Oishii’s high-end approach to produce contrasts with others in the indoor farming industry, such as Bowery Farming, which has faced challenges including layoffs and operational closures. By focusing on strawberries rather than leafy greens, Oishii has carved out a unique niche in the crowded vertical farming market.
Global Expansion Plans
The company’s expansion into Japan marks a key milestone in its global strategy. The Tokyo facility will serve as Oishii’s first international operation, continuing its push to grow beyond the Northeast U.S. and reach more global consumers with its premium indoor-grown produce.
As the indoor farming industry navigates ongoing challenges, Oishii remains optimistic about its prospects and continues to pursue new market opportunities both in the U.S. and internationally.