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Daily news and analysis about the food tech revolution

FreshToHome

ADIO Invests $41M to Improve Farming on Land, at Sea, and in Space

The Abu Dhabi Investment Office (ADIO) announced today it will invest AED 152 million (~$41 million USD) across three ag tech companies to develop new ag tech innovations on land, at sea, and in space. According to a press release sent to The Spoon, ADIO has partnered with U.S.-based Nanoracks, India-based FreshToHome, and UAE-based Pure Harvest for the initiatives. 

ADIO said in today’s press release that the new partnerships will promote more innovation in ag tech specifically as it relates to food security challenges. One major issue highlighted by the COVID-19 pandemic is the fragility of the global food system. In response, various countries, including Singapore, China, and those in the European Union, are fostering innovation at the government level in an effort to improve local food production, build more traceability into the supply chain, and establish more trust between consumers and food producers.

In the United Arab Emirates, one regionally specific challenge is growing more food in a desert climate, in which the ag industry deals with minimal water supply, non-arable land, and climate change issues like drought and rising temperatures. ADIO’s investments are in companies that can both assist in solving these regional challenges and address the issue of food security on a global scale.

Hence, space farming. Nanoracks, one of ADIO’s three new partners, uses the International Space Station and is building the first-ever space research program for ag tech. Its StarLab Space Farming Center in Abu Dhabi will research facility focused on food production both in space and in “equally extreme climates on Earth.” (Spoon readers will recognize Nanoracks as the company that made the Zero G oven, capable of baking cookies in space.)

ADIO’s FreshToHome partnership, meanwhile, will expand the latter’s operational and processing capabilities across land and sea in the UAE. FreshToHome operates an e-commerce platform for fresh produce and controls every point along the supply chain. ADIO said in today’s release that the partnership will also focus on innovations for fish farming and cold chain technology.

Finally, Pure Harvest will use the new partnership to advance its technology and processes for produce grown in controlled environments. That includes more artificial intelligence, robotics and automation, and machines optimized for desert temperatures. The company will also advance work on its commercial-scale algae bioreactor facility to grow Omega-3 fatty acids.

The new partnerships are part of ADIO’s AgTech Incentive Programme, which the Abu Dhabi Government’s Ghadan 21 Accelerator Programme established in 2019. Previous investments from the AgTech Incentive Programme include the $100 million (USD) investment ADIO made in April across four companies: AeroFarms, Madar Farms, Responsive Drip Irrigation, and RNZ.

Indian Food E-Commerce Startup FreshToHome Raises $20M Series B

Today Bangaluru, India-based startup FreshToHome announced that it had raised a $20 million Series B round led by Iron Pillar with Joe Hirao and others participating (via TechCrunch). The startup raised an $11 million Series A in May, bringing its total amount of funding raised to $33 million.

FreshToHome is an e-commerce platform that sells fresh food — like vegetables, seafood, and meat — directly to consumers in nine Indian cities. It puts special emphasis on the fact that none of its products have any chemicals and its meat is antibiotic-free. The company will use its new capital to expand further into India and the UAE and add new products to its platform.

This hefty fundraise speaks to the massive potential for food innovation startups in India. Lately we’ve been seeing a lot of investment action in the country, especially in food delivery. There are already two Indian food delivery unicorns, Swiggy and Zomato, both of whom have been racking up significant investment lately to combat competitors like Amazon and UberEats. Cloud kitchen services are growing to support the spread of delivery: Box8 and Faasos have had significant raises within the past year. There are also quite a few Indian grocery delivery services, including e-grocer Big Basket which joined the unicorn club this May.

The interest is likely spurred by increasing income levels in India as well as the global rise in demand for convenience and the proliferation of online ordering. By placing FreshToHome’s particular emphasis on chemical-free products, FreshToHome is also tapping into consumers’ growing interest in food transparency, especially in India where fish from markets are sometimes treated with chemicals to make them appear fresher.

Of course, as food tech investment heats up, so does the competition. With two significant fundraises in the past three months, FreshToHome seems to be trying to strike while the iron is hot and expand their footprint before the Indian fresh food delivery space gets too crowded.