Saltwater ag startup Red Sea Farms raises $16m from AppHarvest, Aramco

The Saudi Arabia-based firm just secured a $6 million second tranche of Series A financing from two US backers — embattled CEA outfit AppHarvest. Private equity player Bonaventure Capital — following a $10 million injection from regional investors back in June. Red Sea Farms’ other Series A backers include Saudi Arabia’s Wa’ed Ventures — the VC arm of state-owned oil giant Aramco — as well as the Future Investment Initiative Institute and King Abdullah University of Science & Technology ‘s KAUST Innovation Fund ; and Dubai-based VC company Global Ventures .

Going to At the time of the first tranche, the startup, it was raising funds in order to develop its first commercial-scale indoor estates and finance its growth push into the neighbouring UAE. It aims to grow its footprint to between four and eight facilities across central and western Saudi Arabia, as well as the UAE’s Abu Dhabi, covering a total of six hectares. It describes its approach as a “blend of plant science, sustainable cooling, light. Energy management, and systems that use artificial intelligence.” Among other things, it uses saltwater to cool greenhouses and irrigate plantings that it has bred in-house to be more tolerant of salinity.

This opens up planting cultivation opportunities in environments where freshwater is scarce — such as deserts, or small islands at sea — and avoids the high costs associated with seawater desalination. Red Sea Farms mainly focuses on growing tomatoes, and claims that its proprietary setup system results in exceptionally sweet fruit with high levels of vitamins and antioxidants.

Moreover, they can be grown sustainably using saltwater that has been diluted up to 30%, saving as much as 90% of the freshwater typically required for growing tomatoes, the startup suggests. Per to In a statement, the startup, it is already engaged in discussions with prospective investors to participate in its next round of fundraising, which it is slating to take place next year.