Gro Intelligence, a once-promising agricultural data platform, is shutting down after a turbulent period marked by financial instability and legal challenges, according to AgFunderNews. Despite securing some last-minute funding in March and laying off a significant portion of its workforce, the New York- and Nairobi-based company could not sustain operations.
Earlier this year, Gro Intelligence managed to secure temporary funding, which came with significant downsizing. In March, the company laid off 60% of its staff, an effort that extended its operational timeline only slightly. Despite these measures, the remaining staff were informed this week that the company would be closing, with a skeleton crew retained to handle the winding down of operations, sources close to the company reported.
Gro Intelligence is also facing legal and regulatory scrutiny. Former employees have filed lawsuits against the company, alleging violations of labor laws that require advance notice for mass layoffs. Additionally, the Securities and Exchange Commission (SEC) is investigating potential investor fraud or misrepresentation. Sources indicate that the SEC has requested communications and presentations made to investors.
Gro Intelligence was founded in 2012 by Sara Menker, an energy commodities trader. The company aimed to build the world’s largest agricultural data platform. In January 2021, Gro secured an $85 million Series B funding round from notable investors such as Intel Capital and Africa Internet Ventures. That same year, TIME magazine named Gro one of its 100 most influential companies.
However, by February of this year, Gro was struggling to make payroll. Founder Sara Menker stepped down as CEO but continued to handle some business development and fundraising responsibilities. Around this time, COO Sewit Ahdorem also left the company.
AgFunderNews reports that a former employee highlighted a fundamental mismatch between Gro’s product and market needs as a critical factor in its downfall. While the company generated most of its revenue from Unilever and secured deals with other food companies and commodities investors, it struggled to secure larger-scale projects. 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 former employee also pointed to strategic missteps, including pursuing projects resembling bespoke consultancy work that did not generate replicable revenue streams and hiring issues. Notably, the absence of a Chief Financial Officer until recently hampered the company’s ability to produce reliable financial reports for investors.
Despite these challenges, Gro Intelligence achieved significant technological feats. Founder Sara Menker once claimed that Gro had inadvertently built the world’s largest climate data platform. The company aggregated data from various sources, including government agencies, trade organizations, and financial markets, to provide actionable agricultural insights. For example, 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.
As Gro Intelligence winds down, the future of its intellectual property remains uncertain. One former employee speculated that someone might acquire it “for pennies on the dollar.”
