Infarm makes a loss of 48 million euros

The start-up is struggling with losses, but turnover increased significantly. The unicorn missed its own forecast.

Berlin-based vertical farming company Infarm has published updated financial data for the 2020 financial year. Founded in 2013 by Osnat Michaeli and brothers Erez and Guy Galonska, the company generated a turnover of 5.2 million euros in its first year of coronavirus. In 2019, the figure was only around two million euros. It therefore fell well short of its forecast of a 400% increase in turnover.

According to the company, this development is due to both an increase in sales revenues at the subsidiaries and the acquisition of new customers in Germany, while Infarm assesses the sales growth positively: "The previous year's forecast was not achieved with the sales development achieved. This is due to the global pandemic, because even though it has no direct impact on the product as such, the restrictions on the movement of people and goods led to a slowdown in global expansion," the annual financial statements state. In the 2019 annual financial statements, the company assumed a "strong increase in turnover of 400%".

The net loss for 2020 amounted to a considerable 48 million euros (previous year: 24.4 million euros). "Against the background of the global restrictions on the movement of people and goods and the impact on global expansion, we are therefore nevertheless very satisfied with the development of the 2020 financial year. In addition, the net loss for the year was better than forecast". The company had originally expected its net loss to double in 2020.

The total costs for Infarm's preparations up to the end of 2020 already amount to 87 million euros. By the end of 2020, the vertical farming unicorn Infarm aims to have raised a further 150 million euros. Hanaco, Atomico, Lightrock, Partners in Equity, Bonnier, Qatar Investment Authority (QIA) and Hanaco are some of the company's backers.