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Indoor farming company Soli nets $125M led by CDPQ

Oct 12, 2022
Illustration of a pitchfork with money on the end.

Illustration: Aïda Amer/Axios

Soli Organic, an indoor farming company, raised $125 million in Series D funding, the company tells Axios.

Why it matters: The funding round shows that larger investors are seeking to get a foot in the door of the growing ag-tech market.

Details: CDPQ, which has nearly $400 billion in net assets, led the round and will receive a board seat as part of the deal. New investor Movendo Capital, B.V. participated in the round with existing investors S2G Ventures, Cascade Asset Management Company and XPV Water Partners.

  • Goldman Sachs acted as exclusive placement agent for Soli Organic.
  • Soli raised $50 million in venture debt in May.

How it works: Soli Organic primarily grows herbs and leafy greens for retail sale in its indoor facilities using soil instead of hydroponics.

  • Soli also makes nitrogen-based fertilizer using organic waste from its facilities. The waste is something that CEO Matt Ryan has explored selling as an additional revenue stream.
  • "It's always Plan B, but we're still on Plan A," he tells Axios.

👀 What we're watching: Ryan says the 33-year-old company has no plans to go public anytime soon, but that the option for an exit or additional outside funding isn't completely off the table as it continues the costly endeavor of building new indoor growing facilities.

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