Once a rising star, agricultural data company Gro Intelligence is closing its doors after facing financial difficulties and legal issues.
Despite last-minute funding and workforce cuts, the New York- and Nairobi-based company company couldn’t stay afloat.
Founded in 2012, Gro aimed to be the world’s leading platform for agricultural data. Early success included an $85 million funding round in 2021 and recognition by TIME magazine as one of its 100 most influential companies.
However, by 2024, the company was struggling financially. Founder Sara Menker stepped down as Chief Executive Officer (CEO), and key executives like Chief Operations Officer (COO) Sewit Ahdorem left.
Several factors contributed to Gro’s downfall. AgFunderNews reported that the company’s product didn’t meet market needs. While securing deals with companies like Unilever, Gro couldn’t attract larger-scale projects. Efforts to expand into food security and government partnerships proved unsuccessful.
“Efforts to position itself as a food security platform for countries in Asia and the Middle East were unsuccessful, as were attempts to engage the US government more comprehensively,” the reports read.
Strategic errors also played a role, according to the reports. Gro reportedly pursued projects that didn’t generate sustainable revenue, faced hiring issues, and lacked a Chief Financial Officer (CFO) for financial reporting.
“Gro Intelligence is also under legal and regulatory investigation. Former employees have sued the company, alleging it violated labor laws requiring advance notice for mass layoffs. Additionally, the Securities and Exchange Commission (SEC) is probing potential investor fraud or misrepresentation. Sources report that the SEC has requested communications and presentations made to investors.”
Despite the closure, Gro achieved technological advancements. According to the CEO, the company built a massive agricultural and climate data platform, aggregating information from diverse sources like government agencies and trade groups. It used this data to generate insights, such as predicting crop yields using satellite imagery and weather data.
“Gro combined satellite imagery with weather and soil data to predict crop yields, utilizing information from entities like the USDA’s National Agricultural Statistics Service and Brazil’s Institute of Geography and Statistics,” the reports stated.
The fate of Gro’s intellectual property remains unknown. One former employee predicts it could be acquired for a small sum. Gro’s closure leaves a gap in the agricultural data landscape, raising questions about the future use of its technology.