Green City Farming has secured SEK 7.5 million (US$709,000) in new funding from existing investors as it works toward profitability and prepares for expansion. The company, based in Gothenburg, Sweden, says the capital will support production scaling and product development while keeping operations lean.
"The funding round came together through strong relationships with our existing investor base, who have followed our progress closely," says Robert Carlsson, CEO of Green City Farming. "In today's market, we were pleased to close the round quickly and with full alignment."
Focus on existing backers for speed and alignment
According to Carlsson, the decision to limit the round to current investors was driven by efficiency. "Our current investors know the business and share our long-term vision. While we're open to new VC participation in future rounds, this phase was about securing capital efficiently and moving forward without delay," he explains.
The company is allocating around 60 per cent of the capital to scaling production at its Gothenburg facility. The remainder will support product development, targeted automation, and commercial activities.
Path to profitability through disciplined growth
Green City Farming expects to reach break-even by the end of the year, driven by sales from its current 20 per cent production capacity. The company's strategy has emphasized cost control and operational efficiency rather than rapid expansion.
"We're aiming to reach break-even by selling 100 per cent of the output from our current capacity. That will be sufficient to prove that our turnkey vertical farm solution is financially sustainable and commercially viable, without needing to scale production or expand R&D further," says Carlsson.
Key cost drivers the company has addressed include labor efficiency, rent, and energy use. Green City Farming has optimized workflows, upgraded lighting and irrigation systems, and introduced energy-saving measures such as automated light dimming and energy price tracking.
Avoiding early automation to protect margins
While many vertical farms adopt automation early, Green City Farming has taken a different approach. "We wanted to first prove the model and get the economics right," Carlsson says. "Automating too early can lock in inefficiencies and inflate costs. Our strategy has been to stay agile, introducing automation only where it creates measurable value and can scale with us."
The company's Gothenburg facility currently operates at 20 per cent capacity, with existing infrastructure in place to scale as demand grows.
For more information:
Green City Farming
Robert Carlsson, CEO
[email protected]
www.greencityfarming.com