Stacked Farm expands with USD 150M investment in automated vertical farming

AUSTRALIA – Australian vertical farming start-up Stacked Farm has announced plans to build a USD 150 million fully automated farm in Melbourne, marking a leap forward in sustainable indoor farming.

Based on the Gold Coast, Stacked Farm has been steadily refining its approach to vertical farming since 2017. The company’s chief operating officer, Sam Canavan, attributed its success to a deliberate growth strategy.

“We think the second or third mouse gets the cheese, so we are going to hang back, see what others are doing, and learn from their mistakes,” he said.

Unlike many of its competitors, the company developed its own proprietary robotics rather than relying on expensive, off-the-shelf systems.

Stacked Farm’s 400-square-meter research facility evolved into a 2100-square-meter operational farm in Arundel by 2021.

This site now produces several tonnes of leafy greens and herbs weekly, catering to popular chains like Grill’d, Fishbowl, and Nandos. With the new Melbourne facility, the company aims to produce an impressive 3.4 million kilograms of greens annually, operating with a lean team of just 15 staff.

Stacked Farm’s expansion is funded by a mix of debt and equity financing, with contributions from existing backer Magnetar Capital, Tribeca Investment Partners, and Tayside Investments Australia.

These funds will enable the company to scale up operations while maintaining its commitment to sustainability and cost-efficiency.

“The vertical farming industry has seen a few fallen operators in recent times,” said Conrad Smith, Stacked Farm’s chief executive. “We’ve invested crucial time and resources early in planning, iterating, and research and development to ensure a viable business model with data-driven decision-making at the forefront.”

Vertical farming involves growing crops in stacked layers within controlled indoor environments. This method significantly reduces water usage and environmental impact compared to traditional farming, while also being less vulnerable to natural disasters such as floods or droughts.

The global vertical farming industry has faced notable challenges recently, with high-profile companies such as Bowery Farming and AeroFarms struggling to sustain operations.

Some, like AppHarvest, have even filed for bankruptcy. Stacked Farm’s cautious approach sets it apart from these operators, who, according to Mr. Canavan, were burdened by high costs and rapid, unsustainable expansion.

Despite these challenges, Stacked Farm remains optimistic about the future of vertical farming. Mr. Canavan emphasized the cost-effectiveness of their produce, stating, “We can produce herbs like rocket, basil, and parsley at the same price or cheaper than traditional farms, with a much smaller environmental footprint and a longer shelf life.”

With its Melbourne farm set to open in mid-2026, Stacked Farm is already in discussions to expand further both domestically and internationally.

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