INDONESIA – TaniHub Group, one of the leading agritech company’s in Indonesia, has raised US$17 million in a Series A extension round co-led by Openspace Ventures and Intudo Ventures.
The round also saw the participation of UOB Venture Management, Vertex Ventures, BRI Ventures, Tenaya Capital and Golden Gate Ventures and brings the total funding raised by the company to US$29 million since its establishment in Mid-2016.
In May 2019, TaniHub raised US$10 million in a Series A funding round to further support its platform, which links farmers together with multiple sources of customer demand, handling order management, logistics support and financing options.
The platform connects farmers with more than 5,000 business customers, ranging from small and medium enterprises (SMEs), hotels, restaurants, and catering services to food processing industry players as well as more than 115,000 retail customers.
Over the past year, TaniHub says that its business has experienced 3x year-on-year growth, while more than 30,000 smallholder farmers have joined the TaniHub ecosystem.
Pamitra Wineka, President and cofounder of TaniHub Group, explains: “The revitalisation of farmers is crucial to Indonesia’s agriculture sector, which represents one of the most significant contributors to the country’s economy.
“Farmers need to improve their productivity and income as those are important factors to ensure young generations that the agriculture sector offers bright prospects.
“Our ecosystem of TaniHub Group is designed to help farmers achieve those dreams, and consumers can enjoy agriculture products at fair prices. This will enable ‘Agriculture for Everyone,’ which is our ultimate goal.”
TaniHub currently operates five regional offices and distribution hubs in Bogor (West Java), Bandung (West Java), Yogyakarta, Surabaya (East Java) and Denpasar (Bali).
With this round of financing, TaniHub Group aims to strengthen its market-leading position and accelerate the expansion of service and geographical coverage for farmers and customers.
The company said that it will also invest in operational improvements, including the implementation of automation solutions in the company’s new processing and packing center.
The company will roll out three new hubs to deepen its nationwide coverage and provide a smoother end-to-end supply chain process.
As part of its inclusive efforts to reach more farmers and improve agricultural productivity, TaniHub also plans to launch a new automated Packing and Processing Center (PPC) in Malang, East Java.
Going forward, TaniHub Group said that it will continue to strengthen its supply-side through its partnership with farmers by improving productivity, consistency, and regeneration.