Scottish agritech startup Intelligent Growth Solutions (IGS) has raised £42.2 million as part of an oversubscribed Series B funding round.

IGS confirmed the investment at COP26 in Glasgow last week, where the firm has been showcasing its technology at the Sustainable Glasgow Landing on the banks of the Clyde.

The latest funding round brings the total investment in IGS to more than £52 million, and was supported by Swiss, US and Scotland-based investors.

For Swiss investment firm COFRA, which led the round, this marks the first investment into sustainable food systems and agritech as part of a strategy to contribute to the food system transition.

IGS Chief Executive David Farquhar commented: “The conclusion of a hugely over-subscribed Series B round represents another exciting step for IGS and our investors.

“We have been supported with this investment by well-established, globally recognised and highly ethical investors in COFRA, Cleveland Avenue and DC Thomson, who understand the transformational potential of our technology for controlled environment agriculture.”

According to IGS, the investment will be used to accelerate the firm’s technical development and allow for “wider and faster” global marketing penetration.

Speaking at IGS’ COP26 demonstration site last week, First Minister Nicola Sturgeon added: “It’s fantastic to see a Scottish company at the forefront of innovation in agritech and vertical farming attracting investment from across the world.

“With a great team behind it and support from Scottish Enterprise, IGS is expanding rapidly.”

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Founded in 2013, IGS designs and builds innovative vertical farms for growers in global food, pharmaceutical and fragrance markets.

Demand for IGS’ vertical farming tech has increased rapidly in recent years, and the firm now employs more than 150 staff . The startup has also deployed its technology to customers across four continents, and in the last 12 months has quadrupled its sales pipeline.

As part of the deal, Donald Brenninkmeijer and Jason Mraz from Ospraie Ag Science LLC have both been appointed to the IGS Board as non-executive directors.

Brenninkmeijer commented: “With a growing population putting ever greater strain on resources and the environment, there is an urgent need for sustainable, high-yield forms of food production.

“We’re excited to support IGS on its journey to resolve the dual challenge of food insecurity and environmental degradation through its vertical farming technology.”

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