Robots And Bees: High-Tech, Vertical Strawberry Farm In N.J. Raises $50 Million In Series A Round

In 2018, Oishii, a vertical strawberry farm in Kearny, N.J. that depends on both bees and artificial intelligence, introduced New Yorkers to the Omakase Berry. The fragrant Japanese variety became the darling of Michelin-star chefs and the patrons of tony Eli’s Market on the Upper East Side of Manhattan. At $50 for a box of eight, this was luxury branding at its best.

But Oishii CEO Hiroki Koga believes that everyone should have access to delicious, sustainably grown strawberries and other quality produce Now, he and his cofounder, COO Brendan Somerville, are on their way to achieving that goal.

Today, March 11, the New York-based company announced it has raised $50 million in a Series A round, bringing its total funding up to $55 million and positioning it for expansion into new crops and other metropolitan areas. The funding round was led by SPARX Group’s Mirai Creation Fund II. Other investors include Sony Innovation Fund, PKSHA Technology, and Social Starts.

“Oishii is the farm of the future,” SPARX Group Co. President and Group CEO Shuhei Abe said in a statement. “The cultivation and pollination techniques the company has developed set them well apart from the industry, positioning Oishii to quickly revolutionize agriculture as we know it.”

Oishii, which means “delicious” in Japanese, currently grows its famed Omakase Berry in a warehouse-turned-vertical-farm. The crop is pesticide-free but pollinated by real bees, which live in hives on the premises—queen bees and all.

“These bees are very happy; they live in harmony with our farmers and robots,” Koga told me in an interview before the announcement.

While he didn’t give me details on Oishii’s technology, Koga did disclose that the vertical farm uses both water and soil as growing mediums and that robots play an important role, some of them taking millions of pictures a day to provide a constant flow of visual data. Other machines monitor environmental data, such as temperature, humidity, CO2, wind speed and light to make sure the levels remain consistent. Human farmers, who are important, too, must go through three levels of decontamination procedures before entering the facility. Currently, Oishii has about 50 employees in all, and will be ramping up hiring with the new funding.

The Omakase berry is one of 250 sweet and fragrant varieties that grow in Japan’s foothills, only in the winter. The vertical farm recreates the unique climate the berries need to flourish year-round and indoors.

The funding round will enable Oishii to expand the footprint of its New Jersey facility, said Koga, who had previously worked in vertical farming in Japan before moving to the U.S. six years ago to get his MBA. Next, they plan to move on to growing other types of produce and opening up facilities elsewhere.

“Our vision is to create a new standard for fresher, tastier strawberries, where everybody around the world has access to this hyper-local food,” Koga told me.

Part of the money Oishii raised will go to continued R&D, as the company introduces other strawberry varieties and other types of produce, such as tomatoes, grapes and melons. Traditionally, most vertical farming operations have focused on greens because they’re relatively easy to grow and don’t require pollination. But strawberries, said Koga, have remained “the holy grail of vertical farming.” They are notoriously difficult to grow indoors because of their long cultivation cycles.

“ I always want Oishii to stand as a brand of excellence, but our goal is to democratize this technology and make it successful for the rest of the world, “ Koga said.

From an environmental perspective, Oishii’s growing methods are enviable, using less water and land than traditional strawberry farms and eschewing all pesticides. And by having vertical farms in major metropolitan areas, produce doesn’t have to be shipped far to get to customers. Strawberries routinely top the “Dirty Dozen” list of conventional produce that have the highest levels of pesticide residues.

Environmental cred is important,, but you are no doubt wondering, what does the Omakase Berry taste like? The large berries are more orangey in color than your average red supermarket strawberry, to the point that I thought they weren’t ripe. But when I bit into one (a sample that did not meet the standards for sale), that was clearly not the case. The first thing I noticed was the fruit’s intoxicating perfume.The berry tasted almost floral and very sweet.

Koga compared his pricey strawberries to the first Teslas with their eye-popping price tags. As production has expanded, the vehicles have become more affordable. No doubt, Oishii’s vertically farmed produce will come down in price as they scale up operations. But don’t expect to be gobbling Omakase Berries by the handful—unless , perhaps, you’ve raised $50 million recently. The berries will continue to retail for $15 for a box of three medium berries up to $50 for eight big ones.

“We’re currently developing a few other strawberry varietals that are designed to deliver exceptional flavor for everyday occasions,” Koga said in a followup email.“The Omakase Berry will remain our flagship berry that is meant for life’s celebratory moments and special occasions.”