AsiaFundingFundings & ExitsRecent FundingStartups

Agritech startup TaniGroup raises $10M to help Indonesia’s farmers grow

In 2016, former World Bank analyst Eka Pamitra teamed up with five friends to begin a business that would assist farmers in their native Indonesia. Today their company — TaniGroup — closed a $10 million successions a circular that’s aimed at expanding its service nationwide with the help of the government.

TaniGroup works for more than 25,000 farmers in Indonesia to assist them get fairer rates for their crops, and grow their businesses. It does that in two ways. It operates a b2b platform that helps farmers trade their produce direct to retailers, which reaches a registered user base of 400 SMEs and 10,000 consumers. The company also manages a microloan fund that grants farmers access to working capital for growth.

TaniHub is the sales service and TaniFund is, as the name suggests, the microloan fund. The fund arrived in 2017 when the product had landed initial traction, and it is registered with the Financial Services dominance (OJK) and is a member of Indonesian Fintech Lenders Association (AFPI).

Pamitra said a combination of factors mean TaniGroup can assist farmers grow their overall income by 60% or more. That is driven more by sale volumes than price, the latter of which he said is usually 30-40% higher than traditional reseller channels.

“The most important thing is not necessarily pricing; farmers care more about the certainty of sales,” he explained to TechCrunch in an interview. “Many are frightened to food stuff too many crops because local aggregators or middlemen don’t have the capacity to absorb everything.”

“The fund focuses on preferred farmers we want to fund to assist produce more or release them from the middlemen that currently fund them,” Pamitra added.

While middlemen have a reputation for operating like cartels and adding costs and complications, Pamitra said that in many cases they are actually farmers who assist coordinate sales with others. For instance, going to other farmers if they need more produce to fulfill a higher-than-usual order that they can’t finish themselves.

“Some middlemen are the smartest in their team of farmers. We attempt to empower them through TaniFund; they often begin teaching others their tips and can have a positive impact,” he said.

The company plans to disburse its brand-new cash on general growth, which will include hiring more staff, improving the tech, expanding logistics and upgrading warehouses. That’s much needed since the government has tapped the startup to assist enhance Indonesia’s farming community — Pamitra said TaniGroup has been given access to government research on farmers that includes a database of some 3 million farmers. (President Joko Widodo previously namechecked the startup as a company that is helping Indonesia’s agricultural industry.)

For now, TaniGroup’s ambitions are firmly focused on Indonesia, but Pamitra said there is a belief that the business can diversify overseas. Already it has exported orders to markets like Switzerland, Singapore, Malaysia and beyond, but there is real potential to diversify the farmer network into brand-new markets, he said. Officials from the Malaysia government have already expressed interest in making such a move, but Pamitra admitted that “there’s a lot to do here” in Indonesia first.

TaniGroup raised its successions a from Openspace Ventures — which led the circular — Intudo Ventures, Golden Gate Ventures and The DFS Lab, a fintech accelerator that’s funded by the Bill and Melinda Gates Foundation. The startup previously raised an undisclosed seed circular last April from Alpha JWC Ventures and several angel investors.


Related Articles

Leave a Reply

Your email address will not be published. Required fields are marked *