Infarm, one of the world’s fastest-growing vertical farming companies, has picked bankers to line up a mammoth fundraising that will underline burgeoning investor interest in the sector.

Sky News has learnt that Infarm has hired Goldman Sachs to oversee its biggest funding round to date, just five months after raising $170m from a syndicate of blue-chip backers.

Sources said the latest financing was likely to kick off in the coming weeks and would be completed later this year.

It is expected to crystallise so-called ‘unicorn’ status for Infarm – meaning it would join the crop of European technology companies worth at least $1bn.

Infarm, which is based in Germany, is targeting a vertical farming network of 5m square feet by 2025, it said in a statement last year.

The company is one of a breed of start-ups attempting to address food supply problems, some of which have become particularly intense during the coronavirus pandemic.

Unlike its rivals, Infarm installs modular ‘mini-farms’ which are located within supermarkets and restaurants.

In the UK, it has a partnership with Marks & Spencer, while it also operates in countries including Germany and Japan.

The speed at which Infarm is commencing plans for its next fundraising underscores the rate of cash-burn within the vertical farming sector, according to one investor.

An Infarm spokesman declined to comment on the fundraising or to provide any details about the company’s recent performance.

Related posts:

Ex-British Land chief Grigg to head new £22bn Infrastructure Bank BoE governor: Climate risks ‘not reflected in market prices of most financial assets’ Up to quarter of supermarket milk deliveries missed due to driver shortages, says dairy giant ‘Many thousands’ could lose jobs as changes to furlough scheme come into force Rolls-Royce picks British bidder for marine arm after Norwegian veto Zoom quarterly revenues top $1bn for first time but slowdown warning hits shares Premier League club chief says sorry as football becomes latest sector to be hit by worker shortages Surprise rise in house prices and the UK economy looks strong General Motors halts production at eight North American factories due to chip shortage Stock markets stage recovery despite ominous omicron implications for global COVID fightback £117m deal leaves Victoria reigning over Europe’s rug sector Leap in interest for holidays as COVID testing restrictions are relaxed