Retail giant Walmart said that it will invest in indoor vertical farm Plenty and plans to buy the startup’s leafy greens for its stores in California.
“Walmart’s equity investment is part of a broader strategic partnership to utilize Plenty’s indoor vertical farming technology platform to deliver fresh produce to Walmart retail stores,” said the company in a statement.
Walmart did not disclose the size of its equity stake, but mentioned that it will have a seat in Plenty’s board of directors. The investment is part of a $400 million funding round that is subject to regulatory approval, Walmart said.
The move aims to boost Walmart’s access to fresh produce — with people eating at home more often during the pandemic, demand for farm products increased as retailers took a hit from supply chain problems.
Plenty, a San Francisco-based start-up, grows produce using technology that supplements traditional farming. Arama Kukutai, Plenty CEO, said that a partnership with the largest grocer in the U.S. is a “game-changer for the agritech industry.”
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