Oishii Closes Its Series B Round

We are thrilled to announce that Oishii has closed its Series B Round at a staggering $143million. Oishii plans to deploy this capital towards opening a solar-powered vertical farming facility, expanding into new markets, and investing in R&D projects around breeding, robotics and automation.

CEO Hiroki Koga recently showcased Oishii on CNBC, offering insight into the company and product demos. Look out for when the host tries Oishii’s Rubi tomatoes; as you would expect, they don’t disappoint!

Our focus on vertical farming aligns with our belief in efficient, sustainable food production, driving us to seek innovative companies and technologies in the sector. Thus, towards the close of 2023, we renewed our conviction for the space, conducting an in-depth exploration of the current state of the vertical farming sector. These deep dives are an integral part of the Food Tech Team’s ongoing due diligence, as we consistently delve into industry-specific deep dives to enhance our knowledge and stay well-informed. This proactive approach aids us in identifying new investment opportunities, enabling portfolio diversification and a more profound impact on the food industry.

Throughout our extensive examination of the indoor vertical farming sector, we looked at over 500 companies, ultimately selecting 25; further due diligence was applied to 12 companies with the most compelling technology and value propositions. The insights gained from these engagements have led us to draw certain conclusions about the sector, which we are eager to share with you:

  • Considering the limited capital available, companies are adopting an assetlight approach, prioritising positive unit economics. The era of raising substantial capital without a clear path to profitability has concluded for vertical farms.
  • Consequently, there has been a shift away from high sophistication and automation, with farms increasingly favouring analog approaches.
  • Whilst customer traction and offtake agreements were once impressive to investors, most companies have some degree of commercialisation. It is only those with comparable pricing and branding that are successful.
  • Many companies are restructuring their operations by focusing on providing hardware and software, opting to license out their vertical farming blueprint rather than managing the farms themselves.
  • In today’s landscape, cost reductions and efficiencies evolve rapidly, which companies in the sector can benefit from. Nonetheless, investing in innovative and distinctive models is crucial for success.
Photo by Oishii

Whilst these takeaways have made us cautious about the future of the vertical farming sector, they have also strengthened our belief in Oishii as the right company in the industry. Oishii’s success is a result of their prudent capital spending and strategic scaling as well as more favourable economic cycle. Additionally, Oishii’s focus on premium strawberries has allowed them to carve a niche, build a brand, validate their concept, and create a well-honed blueprint for future growth. Keep it up, Oishii!

Important Notice

The Fund mentioned within is only available to Professional Investors and Retail Investors may not rely on the information within. This is not an offer to sell, or an invitation for an offer to acquire, an interest in the Fund, nor is it an invitation to apply to participate in the Fund. This is not an offering or placement of interests in the Fund in any jurisdiction and should not be construed as such. No information in this document will form the basis of any contract.

McWin Capital Partners is a trading name of McWin Advisors UK Limited. McWin Advisors UK Limited is an appointed representative of G10 Capital Limited which is authorised and regulated by the Financial Conduct Authority.