Growcer expands with Freight Farms acquisition

What happened: Growcer, an Ottawa-based vertical farming startup, is acquiring the assets of US competitor Freight Farms, which went bankrupt earlier this year. The deal, expected to close later this month, includes Freight Farms’ inventory, software, IP, and customer subscriptions.

The tech: Growcer builds modular farms that allow communities to grow fresh produce year-round. Its core product is a vertical farm housed in a shipping container. Inputs like water, electricity, and growing substrates feed a hydroponic system inside a climate-controlled shipping container. The result is a highly localized food supply that’s independent of season, distance, or traditional farmland.

Freight Farms operated on a similar model, with units deployed at over 500 sites around the world.

Why it matters: Climate change, supply chain shocks, and geopolitical instability are disrupting how and where food can be grown.

Vertical farming is more resistant to a changing climate, allowing growers to control conditions and inputs, and can reduce the environmental footprint associated with growing food.

Companies like Growcer are increasingly finding a fit focusing on food security for remote and under-served communities, where supply chains are long, costly, and fresh produce is limited.

The context: Vertical farming has gone through major growing pains in recent years. After a surge of activity - and almost $4 billion in VC funding - big players like Bowery and Plenty (backed by Jeff Bezos) have scaled back or shut down entirely.

The industry is starting to recover, with a new generation focused on operational efficiency, crop selection and finding viable markets.

Growcer is in the latter camp and bootstrapped most of its growth, only raising a $3 million Series A last year. Freight Farms, by contrast, raised more than US $45 million.

What’s next: Growcer plans to close the deal by the end of July and offer ongoing support to Freight Farms’ customers. It also plans to implement cost recovery measures to ensure long-term sustainability.

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