Abu Dhabi's Pure Harvest raises $60m to fund GCC growth

Abu Dhabi-based agri-tech enterprise Pure Harvest Good Farms secured $60 million through two financing discounts and may turn to raise another $100m this season as it expands operations and accelerates progress into other GCC market segments.

The business secured $50m through a Shuaa Capital-led organized Islamic debt deal where Sancta Capital and Franklin Templeton were anchor investors. This comes after on from a $10m equity funding spherical led by Sancta Capital in January, it explained in a assertion on Monday.

The funding “works with our aggressive growth campaign within the GCC region”, Sky Kurtz, co-founder and leader of Pure Harvest, said. "This sort of funding underscores the innovation happening within the region’s venture capital markets.”

Pure Harvest will likely tap the debt market again within the next quarter and may raise as much as $100m more in growth funding this year, Mr Kurtz told The National.

"We happen to be an early on stage company but we are bit of a different pet … we are construction significant infrastructure," he explained. "We haven’t however decided how we are going to finance the next stages. If we financing only our Kuwaiti center as a standalone [job then] it could be a smaller number, to the tune of $40-$50m."

The company has already been in talks about opening facilities in every GCC markets and potentially Singapore next year, for which it'll need more capital.

"What I can say comfortably is certainly that people expect we will require at least $100m between now and then year to build up on the ideas that we now have for new assignments, just for the region by itself," Mr Kurtz said.

"If we secure additional assignments in places like south-east Asia for expansion next year, we'd need additional capital."

Pure Harvest, which aims to create sustainably-grown local produce throughout the year, has raised a complete of $216m to date. It'll use the proceeds from the latest financing to aid capacity expansion, attract latest talent and boost research and development, including development projects together with the Abu Dhabi Expenditure Office.

Covid-19 has highlighted the necessity for increased domestic food production to lessen reliance on international supply chains, Mr Kurtz said.

The pandemic, which includes infected a lot more than 120 million people all over the world and claimed over 2.66 million lives, brought global trade to a halt this past year. The closure of borders to stem the pass on of the virus likewise uncovered vulnerabilities in food-importing countries.

Between 80 and 90 % of food in the GCC is imported, regarding to Chatham House. However, improving food security and creativity in agriculture happen to be among the very best priorities for the UAE, the second-biggest Arab market. The Abu Dhabi federal government has recently earmarked Dh1 billion ($272m) for an agri-tech incentive program within its Ghadan 21 accelerator initiative.

In November, Adio said it is dispersing $41m to 3 technology organizations - Pure Harvest, grocery program FreshToHome and space research strong Nanoracks - to build up local expertise and new ways of creating food in arid climates.

Efforts to really improve local food development already are bearing fruit, seeing that the amount of locally-harvested manufacture steadily rises seeing as farming ventures increase development through the utilization of technology.

“Investors seeking usage of middle-market credit rating transactions is increasing across the region, and it is exciting in growth sectors that are actually addressing global challenges like water scarcity and foodstuff reliability,” Mohieddine Kronfol, global sukuk and Mena fixed income chief investment officer at Franklin Templeton, said.

“We’re backing the region’s pioneer found in high-tech agriculture and supporting their efforts to possess a large-scale impact found in the marketplaces they serve.”

In September, Pure Harvest said it could invest over €30m ($35.85m) to create a hi-tech farm found in Kuwait to supply fruit and fruit and vegetables to The Sultan Center, among the country's most important independent supermarket operators.

The business also secured a multi-stage investment commitment of $100m this past year from Kuwait's Wafra International Investment Company to invest in hiring and expansion over the region.

“We are passionate about our mission to create local-for-local production of high-quality fresh make practical anywhere, including within the harsh environment of our residence, the Arabian Gulf,” Mr Kurtz said.