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

Abu Dhabi-based agri-tech firm Pure Harvest Good Farms raised $60 million through two financing discounts that can help the company expand its functions and accelerate its expansion to other GCC market segments.

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

The funding “works with our aggressive progress campaign within the GCC region”, Sky Kurtz, co-founder and chief executive of Pure Harvest, said. "This sort of funding underscores the innovation occurring within the region’s capital raising markets.”

Pure Harvest, which raised $29.3m in Series A good financing this past year, aims to produce sustainably-grown local produce throughout the year.

It will use the proceeds from the most recent financing deals to aid capacity growth, attract new skill to the business and boost exploration and development, including technology projects in partnership with the Abu Dhabi Expenditure Office.

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

The pandemic, which has 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 last year. The closure of borders to stem the spread of the virus as well uncovered vulnerabilities in food-importing countries.

Between 80 and 90 % of food in the GCC is imported, regarding to Chatham House. However, bettering food security and technology in agriculture are among the top priorities for the UAE, the second-biggest Arab economy. The Abu Dhabi federal government has recently earmarked Dh1 billion ($272m) for an agri-tech incentive program as part of the government’s Ghadan 21 accelerator initiative.

In November, the 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 producing food in arid climates.

Efforts to really improve local food production already are bearing fruit, while how much locally-harvested manufacture steadily rises as farming ventures increase development through the use of technology.

“Investors seeking access to middle-market credit rating transactions is increasing over the region, and it is exciting in growth sectors that are addressing global challenges just like water scarcity and foodstuff security,” Mohieddine Kronfol, global sukuk and Mena fixed cash flow chief investment officer in Franklin Templeton, said.

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

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

The company also secured a multi-stage investment commitment of $100m last year from Kuwait's Wafra International Investment Company to fund hiring and expansion across the region.

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