by Freepik
Invest in companies providing CEA solutions to adopt a B2B model by selling their technology, services and products to farms, grocery stores, and restaurants. They may also adopt a B2C model by selling products directly to consumers through their own stores or online marketplaces. Revenue streams can come from the sale or leasing of CEA systems, ongoing maintenance and support services, as well as the sale of produce. Examples of companies active in this space are:
Agroz Group uses advanced CEA hydroponics technology to optimize growing conditions, such as temperature, humidity, and lighting, resulting in higher crop yields and quality. As of May 2023, VCI Global Limited has signed an IPO advisory mandate with Agroz Group which entails a USD2 million advisory fees and a success fee of 5 per cent of the market capitalization of Agroz when listed (18).
Cultiveat conducts indoor precision farming, deploying CEA technologies that provide optimal growing conditions such as temperature, humidity, and lighting, resulting in higher crop yields and quality. They sell their products via an online marketplace and deliver across Klang Valley. Their price range for fresh lettuce is between RM20 - RM 40 or USD 5 to USD 10 (19).
Boom Grow Farms utilizes their patent-pending 'Machine Farm', a modular CEA hydroponics system that is space efficient and scalable. Automation and precision equipment monitor and control factors including temperature, humidity, and nutrients. As of 2021, Boom Grow raised USD 216,000 from SME Corp, PlaTCOM Ventures and MDEC. Boom Grow has also been funded by Angel Investors (20, 48).
Increase national food security and self-sufficiency, enhance sustainable agricultural practices for local food production, increase the yields and the agriculture sector's share of GDP, and optimize land use.
