Agtech start-up Red Sea Farms has raised $18.5 million that it will use to extend its global and regional footprint and expand its fresh produce business in the GCC.
Founded in Saudi Arabia, Red Sea Farms’ technology makes commercial farming possible in the desert using primarily salt water. The start-up is doing this in a region increasingly focused on its own food security as it looks to move away from a reliance on imports.
Global expansion is focused on technology development, and “productisation”, with first generation product sales expected by Q4 2022, a statement from the company said.
“Red Sea Farms has developed a truly innovative and sustainable business model that not only addresses a global issue around food security and limited agricultural resources, but one that is also regionally relevant,” said Fahad Alidi, managing director at Wa’ed, the venture capital arm of Saudi Aramco and The Savola Group, that led the funding round. Wa’ed had contributed to the start-up’s 2021 funding round as well.
KAUST Innovation Fund, one of Red Sea Farms’ original investors, is also participating in the round, along with OlsonUbben LLC, an investment entity owned by Tony Olson and Jeffrey Ubben. Tony Olson is the CEO of SPINS, a leading wellness-focused data company and advocate for the Natural Product Industry, and Jeffrey Ubben is the founder and managing partner at Inclusive Capital Partners and a pioneer in impact investing.
“We’re excited to continue on our mission to address the reliance on freshwater consumption in food production and improve food security with their support and guidance,” Ryan Lefers, CEO of Red Sea Farms, said.
Red Sea Farms, backed by investors from Saudi Arabia and the UAE, announced in January it will expand to the US.
The company has developed technologies, designed specifically for harsh environments. Through a patented system of day and night cooling, along with humidity control and efficient solar and growth monitoring technologies, Red Sea Farms said it has developed a low energy solution which means fresh water typically used to cool greenhouses is no longer required.
