WalmartTuesday’s announcement by Plenty indicated that the company is looking to invest in a vertical farm company Plenty. The start-up will be selling its leafy greens at all California retail stores in California later in the year.

Although the retail giant didn’t disclose the amount of its equity or details of the deal, it said that a Walmart executive would join Plenty’s board. Walmart’s investment forms part of a 400 million-dollar round of financing for Plenty. It was led by One Madison Group, JS Capital and includes participation from SoftBankVision Fund.

The country’s biggest grocer has made the bold move to enter a new area of food technology that brings fresh farm produce to the table. This will increase sustainability, reduce waste, and improve the quality of the product.

There are many start-ups for food and agriculture. become a hot area for venture capitalThe pandemic was particularly severe because consumers are more likely to eat at home and retailers have difficulty sourcing food. Indoor agriculture has also been a solution for unpredictable weather patterns, natural disasters and such as California wildfires. climate change.

Walmart visited various countries, met vertical farms companies and learnt about newer forms of agriculture. Martin Mundo, the U.S. senior vice-president of produce marketing, stated that Walmart considers this an environmentally-friendly approach to ensure reliable supplies of affordable, high-quality produce throughout the year.

Morgan Stanley Research’s report on the future food has found that vertical farming offers several advantages over traditional farming. Because they use synthetic light instead of sun, and don’t have to be subjected to extreme weather changes, crops can grow quicker and produce more yields. You can also grow the crops without pesticides. This eliminates soil contamination and wildlife damage. Because the crops aren’t transported in long haul trucks or subject to temperature fluctuations, consumers often see a longer shelf-life.

Many varieties of lettuce, including kale and arugula, can be grown organically without the use pesticides. This brand is being sold by someone. AlbertsonsShops AmazonWhole Foods-owned Whole Foods Outlets and Delivered by Grocery Companies Instacart & Good Eggs. Plenty, which includes the most recent investment, has raised over $900 million to date.

Arama Kukutai CEO at Plenty said the Walmart deal will make fresh and clean produce easier to access.

He said, “It gives us the chance to grow and not be a small supplier of high-end greens as this category was once accused of.” This isn’t about organic, high-quality leafy greens. “This is about getting consumers to the table on a wider and more democratic basis.”

Plenty, a start-up based in San Francisco that specializes in vertical farming is just one example of many. Bowery Farming and AeroFarms are its competitors.

So far, lettuce and herbs have been the primary crops grown indoors — but the companies are chasing ways to grow more high-value produce.

Walmart California’s 250 stores will soon have leafy greens from a vertical farm located in Compton, Los Angeles. Some greens will sell under the Plenty brand, while others will go under Walmart’s Private Label.

Kukutai stated that although Plenty has all its farms in California, the company is looking to move to the East Coast and grow other crops. Plenty will be selling tomatoes and strawberries to its customers in the next year, Kukutai said.

Following his investment in Plenty through Finistere Ventures’ food and agricultural tech fund Finistere Ventures (which he also invested in), Kukutai became the chief executive officer of Plenty. Others who were investors in the past include: Eric Schmidt’s Innovation Endeavors, Jeff Bezos’Bezos Expeditions is the eponymous fund. Driscoll’s is a large grower of fresh strawberries. Plenty has also signed a contract with the California-based firm to allow it to grow strawberries indoors.

—CNBC’s Lora KolodnyThis report was contributed by you.