Sky News has learnt that Infarm has hired Goldman Sachs to oversee its biggest funding round to date, just five months after raising $170m from a syndicate of blue-chip backers.

Sources said the latest financing was likely to kick off in the coming weeks and would be completed later this year.

It is expected to crystallise so-called 'unicorn' status for Infarm - meaning it would join the crop of European technology companies worth at least $1bn.

Infarm, which is based in Germany, is targeting a vertical farming network of 5m square feet by 2025, it said in a statement last year.

The company is one of a breed of start-ups attempting to address food supply problems, some of which have become particularly intense during the coronavirus pandemic.

Unlike its rivals, Infarm installs modular 'mini-farms' which are located within supermarkets and restaurants.

In the UK, it has a partnership with Marks & Spencer, while it also operates in countries including Germany and Japan.

The speed at which Infarm is commencing plans for its next fundraising underscores the rate of cash-burn within the vertical farming sector, according to one investor.

An Infarm spokesman declined to comment on the fundraising or to provide any details about the company's recent performance.