Saudi Arabia based agri tech startup Grove Saudi Arabia has raised 19 million Saudi riyals (approximately $5.1 million) in a seed investment round, providing fresh capital to expand its controlled environment agriculture and vertical farming operations as the Kingdom continues to invest in domestic food production and sustainability initiatives.
Founded to address challenges related to food security, climate conditions, and water scarcity, Grove Saudi Arabia develops technology enabled farming systems that operate in fully controlled indoor environments. The company’s facilities rely on automation, hydroponics, and data driven climate control to grow leafy greens and high value crops with significantly lower water consumption compared to conventional agriculture, aligning with efficiency benchmarks highlighted by the Food and Agriculture Organization of the United Nations.
The newly raised seed capital will be used to expand Grove’s production footprint, enhance its proprietary farming technology, and invest in research and development aimed at improving crop yield, consistency, and resource efficiency. The company is also expected to scale operational capacity to meet rising demand from retailers, food service providers, and institutional buyers seeking locally grown produce with predictable supply cycles.
Controlled environment agriculture has emerged as a critical solution for arid and water constrained regions. According to McKinsey & Company, vertical farming and indoor agriculture can reduce water usage by up to 90% compared to traditional farming methods, while enabling year round production independent of climate volatility. These advantages have driven growing investment into the sector globally.
Saudi Arabia’s agri tech ecosystem has gained momentum under Vision 2030, which prioritises food security, sustainable resource management, and private-sector participation in agriculture. Government backed initiatives and investment programmes have encouraged startups to develop technologies that reduce reliance on food imports and improve supply chain resilience, particularly for fresh produce.
The global vertical farming market continues to expand alongside this regional push. According to data from Research and Markets, the global vertical farming sector was valued at over $8 billion in 2023 and is projected to grow at a compound annual growth rate exceeding 20% through the end of the decade, driven by urbanisation, climate pressures, and advances in agricultural automation.
Regionally, Grove Saudi Arabia joins a growing cohort of Middle East based agri tech companies working to commercialise sustainable food production models. Comparable startups in the Gulf have raised seed and Series A rounds to deploy indoor farms and technology enabled greenhouses, reflecting sustained investor interest in solutions that combine food security objectives with scalable business models.
As Grove Saudi Arabia moves forward following its seed round, the company is positioned to expand its role in Saudi Arabia’s evolving agri tech landscape, supporting local production capacity while contributing to broader efforts to modernise agriculture through technology and data driven systems.
