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After raising $134 million in Series B funding, Jersey City-based sustainable berry grower Oishii plans to open a solar-powered facility, expand distribution to new markets and invest in advanced robotics.

Led by Japanese telecommunications firm Nippon Telegraph and Telephone (NTT), the round also attracted a diverse group of investors with expertise in food tech, sustainable agriculture and automation, the vertical farming startup said in a Feb. 28 press release.

Additional funding came from Yaskawa Electric Corp., an industrial robotics company. Last year, Yaskawa teamed up with Oishii to develop automation systems for farming tasks.

Other new backers include Bloom8, McWin Capital Partners, Mizuho Bank, Mitsubishi Shokuhin Co. Ltd and public-private fund Japan Green Investment Corporation for Carbon Neutrality.

‘A sweeter future’

Hiroki Koga, chief executive officer and co-founder, commented, “We founded Oishii to solve some of the biggest food supply issues our world faces today – but to do so deliciously. The time is now to take our technology from a promise of a better tomorrow to a proven reality – making good on the movement my predecessors in Japan started a decade ago.”

“This capital will help us pave the way for mainstream adoption of vertical farming in the U.S., and we’re grateful to welcome many new partners to the Oishii family who share our vision of a sweeter future,” Koga said.

Since its founding in 2016, Oishii has raised a total of $189 million.

As the only U.S. vertical farm to sell strawberries year-round, the startup aims to transform the space. Oishii relies on advanced robotics combined with traditional farming methods to operate its three indoor farm facilities, including a 74,000-square-foot flagship in Jersey City.

Among Oishii’s major breakthroughs are introducing state-of-the-art harvesting robots, developed in partnership with Yaskawa, as well as optimizing AI models that power bee pollination, environmental controls and farm output to grow more with less energy and water.

Oishii – which translates to “delicious” in Japanese – introduced its first strawberry in 2018. The Omakase Berry quickly caught the attention of Michelin-starred chefs, tastemakers, and consumers for its sweetness, aroma and creamy texture.

In February 2023, the company unveiled its second strawberry. The Koyo Berry is known for its refreshing sweetness and balanced acidity. Just two months ago, Oishii changed the game again by revealing the jewel-like Rubī Tomato as the third varietal grown in its state-of-the-art indoor commercial farms. 

A taste above

The brand grows pesticide-free, bears the Non-GMO Project Verified seal and is always in season. Oishii has a distribution network across the Northeast that includes Whole Foods Market, FreshDirect and a number of specialty grocers.

Its strawberries retail for between $10 to $15 per tray while a tray of cherry tomatoes sells for about $10.

Alongside the funding round announcement, Oishii said it expects to launch another type of berry later this year.

The Series B defies a pullback by investors in vertical farming over the last few years. That reversal comes due to the challenges of scaling, matching commercial retail prices and funding expensive facilities. In 2023, the sector saw several high-profile bankruptcies, including Newark’s AeroFarms. 

NTT President and Chief Executive Officer Akira Shimada said, “While many in the industry prioritize short crop cycles and unrelenting expansion, Oishii has bucked all trends by emphasizing taste over timelines and profitability over proliferation.”

Shimada went on to say, “Oishii is a leading company with a great vision, a strategic approach and a one-of-a-kind technology and has succeeded in what was previously considered difficult to achieve. We are confident that Oishii will be a great partner to take on the challenges for the future of agriculture.”