Temasek-backed startup bags $30m to help expand vertical farming

Temasek and pharmaceutical major Bayer have launched Unfold, a new company focused on innovating vegetable varieties in the vertical farming space. Together, the two firms have made an investment of US$30 million into the company.

For now, Unfold is equally owned by Temasek and Bayer’s investment arm Leaps by Bayer, but this may change over time as the company seeks new investments from other firms in the future, Unfold CEO John Purcell told Tech in Asia.

Unfold CEO John Purcell / Photo credit: Unfold

What problem is it solving? Vertical farms produce food via indoor growing facilities. They use artificial light, are less dependent on synthetic chemistry and other crop inputs, optimize water use, and take up less space. They also support hyperlocal produce, which effectually reduces the need for food logistics and transportation.

“Just like many people use sensors and automation to make their homes more efficient, vertical farms are generally automated to control growing parameters such as light, temperature, and water use,” Purcell explained.

According to Unfold, the vertical farming market has been attracting more investments in recent years as arable land decreases and demand for local, sustainable produce rises. The growing number of people migrating toward mega cities has also been a factor. As such, the industry is expected to reach US$15.7 billion globally by 2025.

“The global food challenges we increasingly face require us to rethink traditional farming practices. We need to ensure secure farm-to-fork supply chains in urban settings while we also work to reduce the overall environmental impact of farming,” said John Vaske, head of agribusiness at Temasek.

In order to develop new seed varieties, Unfold plans to use seed genetics – also called germplasm – from vegetable crops. In addition, it aims to provide agronomic advice tailored to indoor vertical farms to help its customers make informed decisions.

Meanwhile, it’s also looking to form partnerships with vertical farming operators and tech providers, among others, across the produce supply chain.

“While most startups in the vertical farming market are focusing on the development of more efficient infrastructure, Unfold is the only company with unparalleled assets to unlock the genetic potential of vertical farming,” the company claims.

Some players in the space include South Korea’s Noroo, US-based AeroFarms and Bowery Farming, and Singapore-based Sustenir.

What are its challenges? The vertical farming market is still relatively small, said Unfold, but it’s expected to grow in the future as systems and technologies, such as lighting and harvesting systems, evolve.

The intensive use of energy for vertical farming, which results in high production costs, is also a major issue. Unfold expects, however, that better-performing genetics, the use of alternative energy sources, as well as automation and higher efficiency of lights will make produce from vertical farms more affordable in the future.

Who are the team members? With a background in biochemistry, Purcell previously worked as the head of vegetable seeds research and development of crop science at Bayer.