Infarm makes a loss of 48 million euros

The start-up has to contend with losses, but sales increased significantly. The unicorn missed its own forecast.

Berlin-based vertical farming company Infarm published updated financial data for fiscal 2020. The company, founded in 2013 by Osnat Michaeli and brothers Erez and Guy Galonska, made 5.2 million euros in revenue in its first Corona year. In 2019, it was only around two million euros. This means it fell well short of its forecast of a 400 percent increase in sales.

According to the company, this development is due to both an increase in sales revenues of its subsidiaries and the acquisition of new customers in Germany, while Infarm is positive about the sales growth: "The previous year's forecast was not met with the sales development achieved. This resulted from the global pandemic, because even if 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 financial statements state. In its 2019 financial statements, the company projected "strong revenue growth of 400 percent."

The net loss for 2020 is an impressive 48 million euros, up from 24.4 million euros a year earlier. "Against the backdrop of global restrictions on the movement of people and goods and the impact on global expansion, we are therefore nevertheless very pleased with the performance of fiscal 2020. In addition, the net loss for the year was better than forecast." The company had originally expected its net deficit to double in 2020.

The total cost of preparing Infarm by the end of 2020 is already 87 million euros. By the end of 2020, Infarm, the vertical farming unicorn, aims to have raised another 150 million euros. Hanaco, Atomico, Lightrock, Partners in Equity, Bonnier, Qatar Investment Authority (QIA) and Hanaco are some of the company's backers.