Indonesian agritech startup TaniGroup has raised USD 10 million (IDR 144 billion) in Series A funding, according to a press release issued by the company. The investment round was led by Openspace Ventures, with contributions from Golden Gate Ventures and the DFS Lab, a fintech accelerator funded by the Bill and Melinda Gates Foundation.
Founded in 2016, TaniGroup is a tech startup engaged in two main enterprises: TaniHub, a B2B and B2C e-commerce platform for agriculture products that connects farmers with businesses and end-users, and TaniFund, a platform that gives local farmers access to financing services.
According to an official press statement, TaniHub is currently working with more than 25,000 farmers across Indonesia, and operates five regional offices and distribution hubs in Jakarta, Bogor, Bandung, Yogyakarta, and Surabaya.
The company simplifies the farmers’ supply chains and provides access to markets and finance. TaniHub is able to introduce new markets to farmers, hence improving prices for both sides. In an interview with KrASIA in March, Pamitra Wineka, co-founder and president of TaniGroup, said that farmers can boost their production by 30% after joining TaniHub.
TaniHub now connects farmers with more than 400 small and medium enterprises (SMEs) as well as over 10,000 individual customers.
At the same time, TaniFund provides lending for cultivation projects by farmers who may otherwise lack access to formal financial institutions. Farmers that have joined TaniHub can apply for loans from TaniFund in the form of seeds or fertilizer. It also offers cash for farmers who need capital, and the company will help manage their finances.
TaniGroup will utilize its fresh investment to accelerate its expansion across Indonesia and new product development. The company believes that cultivating a broad range of collaborations is key to improving Indonesia’s agriculture sector. Therefore, TaniGroup plans to work with the central government, regional administrations, international and local organizations, as well as other agritech startups to shape its platform.