Kuala Lumpur- and Hong Kong-based venture capital (VC) firm Gobi Partners has invested an undisclosed amount in Malaysian agritech startup BoomGrow’s recent pre-series A round, according to an announcement.
Gobi Partners and BoomGrow, in a joint statement, said that the investment was made through the Gobi Dana Impak Ventures (GDIV) fund, which is backed by Malaysia’s sovereign wealth fund Khazanah Nasional Berhad. The VC firm said it is doubling down on its commitment to environment, social and governance (ESG)-friendly investments through this latest funding.
“We are at a point in history where we cannot overlook the importance of investing in the right companies that can change the world and in BoomGrow, we see just this,” said Gobi Malaysia managing partner Jamaludin Bujang.
“Food security is a major issue faced by many countries as a result of climate change, rising population, and limited supply of farming areas. Their innovative solutions are ensuring that our supply chain remains intact and healthy for generations to come,” added Jamaludin.
Founded in 2015, BoomGrow grows and sells vegetables. It grows vegetables in what it calls ‘Machine Farms’, which are repurposed shipping containers fitted with farming technology that helps the company grow pesticide-free vegetables with a “significantly reduced carbon footprint”.
The startup was one of the six Malaysian startups put on the ‘Forbes Asia 100 to Watch’ list this year.
Gobi Partners said that it found BoomGrow’s recent move into Manila, Philippines to be a strategic response to the high population density and the growing demand for fresh, clean, and nutritious produce.
The startup’s initial funding came in the form of grant funding from Malaysian government-linked company SME Corp, as well as VC investments from American VC firm Big Sky Capital along with angel investors.
With this latest funding round, BoomGrow aims to expand operations across Southeast Asia.
Founded in 2002, Gobi has $1.6 billion in assets under management (AUM) and offices in Singapore, Bangkok, Guangzhou, Shanghai, Shenzhen, Ho Chi Minh City, Jakarta, and Manila besides Kuala Lumpur and Hong Kong. It has invested in over 380 startups to date.
