According to reports, Agriculture insights platform Gro Intelligence is shutting down after failing to secure enough capital to stay afloat.
Introduction
Gro Intelligence is an AI-powered insights company providing decision-making tools, solutions and analytics to the food, agriculture, and climate economies, they’re headquartered in New York and Nairobi. Gro Intelligence was founded by energy commodities trader Sara Menker in 2012. They raised a $85 million series B round in January 2021 from backers including Intel Capital and Africa Internet Ventures, and was named as one of TIME’s 100 most influential companies that year.
Their Financial Crisis and Work-Force Management
In early 2024, Gro Intelligence faced significant leadership changes when its board replaced CEO and founder Sara Menker, and the company went under the leadership of James Cariello.
company’s efforts to secure emergency funding in March 2024, leading to major challenges in meeting financial obligations. Consequently, the company was forced to reduce its workforce by 60% in March and will now be reducing additional employees, while maintaining a minimal team to oversee the winding down of operations.
Legal Crisis
The company is currently being investigated by the Security and Exchange Commission (SEC) over investor fraud. Former employees of the company have sued the company over alleged violations of labor laws requiring employers to provide advance written notice of mass layoffs, according to AGFunders.
Industry Impact
According to other reports, Gro Intelligence’s challenges grew from multiple factors, including a tough funding environment and a poor fit between its products and market needs. Despite promoting its Al-powered insights and extensive data resources, the company struggled to generate consistent revenue and relied heavily on a few key clients, with Unilever being the largest.
This development unfortunately adds to the closures of agricultural supply chain platform iProcure, Marketforce’s RejaReja and Copia, both e-commerce platforms, this year.
