AeroFarms Secures Financial Stability with Fresh Equity and Debt Refinancing

AeroFarms, a leader in indoor vertical farming based in Ringgold, Va., has taken significant steps towards financial stability and operational expansion by refinancing its debt and securing fresh equity. This move is aimed at supporting its current operations in Danville, Va., and funding pre-construction activities for a second farm. The company's CEO, Molly Montgomery, emphasized the importance of their vision to provide nutritious microgreens globally while conserving natural resources, highlighting the sustainability and profitability of vertical farming.

The financial restructuring involved New York-based Siguler Guff and Wilmington, Del.-based Waterside Commercial Finance, a lender guaranteed by the U.S. Department of Agriculture (USDA). This interim financing is expected to be replaced by a permanent USDA-guaranteed loan later this year. The refinancing arrangement offers more favorable terms, including a lower interest rate and interest-only payments, providing AeroFarms with a stronger financial footing.

Equity funding was contributed by existing investors, including Grosvenor Food & AgTech (GFA), Ingka Investments (an Ikea subsidiary), Cibus Capital, and ACEG, among others. This comes at a time when funding for vertical farming companies has seen a significant decline, with U.S. indoor farming startups raising only $57 million in 2025, a stark contrast to the $2.1 billion raised in 2021. AeroFarms' ability to secure investment underscores the confidence in its business model and leadership under Montgomery, who has streamlined operations to focus on high-margin microgreens, leading to profitability in recent quarters.

Stephan Dolezalek, managing partner of GFA, praised AeroFarms for demonstrating the viability and transformative potential of vertical farming. The company's journey through bankruptcy in 2023 to achieving profitability reflects a remarkable turnaround, positioning it as a key player in the global fresh food supply chain. With its innovative approach to agriculture, AeroFarms is not only addressing the challenges of traditional farming but also contributing to a more sustainable and food-secure future.