TaniHub lands US$65.5M Series B to empower Indonesia’s 40M small farmers through tech, financing
TaniHub Group, which operates e-commerce and P2P lending platforms for farmers in Indonesia, has closed its US$65.5 million Series B round of financing, led by MDI Ventures.
New and existing investors, including Add Ventures, BRI Ventures, Flourish Ventures, Intudo Ventures, Openspace Ventures, Tenaya Capital, UOB Venture Management, and Vertex Ventures, also joined the round.
In January this year, the group announced in a virtual press conference that it was currently finalising a massive funding round.
The company will use the financing to expand the business by ramping up harvest collection and processing facilities while boosting exports for Indonesian agricultural goods.
In a press statement, the firm said these initiatives will enhance local farmers’ access to domestic and international markets.
The group is working closely with the government, including the Ministry of Trade, Ministry of Agriculture and the Ministry of Cooperatives and SMEs, to boost exports of local farmers’ produce and improve the competitiveness of Indonesian agricultural goods on the global market.
“TaniHub Group aspires to narrow the gap between the prices that Indonesia’s 40 million small farmers receive for their produce and the price that consumers pay for the same food,” said Pamitra Wineka, CEO of TaniHub Group.
“With the support of our investors and partners, we plan to strengthen our presence in every region of the country to ensure close proximity with farmers and communities. We will strive to help increase the competitiveness of Indonesia’s agricultural sector and make a difference in the lives of our farmer partners throughout the country,” he added.
Indonesia’s agricultural markets have traditionally been highly fragmented, with farmers restricted to selling in their local area and a long, inefficient supply chain of middlemen and traders. This reduces profits for farmers, increases prices for buyers, and leads to massive food waste.
TaniHub Group meets this challenge with an integrated business-to-business e-commerce, logistics and financing platform for the agricultural sector.
The startup offers a range of agriculture value chain services through TaniHub, TaniFund and TaniSupply.
TaniHub is an e-commerce platform, which aims to narrow the supply chain by giving farmers direct access to a broader range of buyers, mainly small businesses, restaurants, caterers, street food vendors, warungs, fruit and vegetable vendors, and households.
TaniSupply is a logistics platform, which operates six warehousing and processing facilities around the country. Through a shorter supply chain and better handling of the produce, TaniSupply improves the durability of produce and reduces food wastage and carbon footprint.
TaniFund is its embedded fintech platform. This uses data-driven credit scoring to allow farmers in the TaniHub network to borrow money to fund cultivation–and pay off their loans once their produce is sold via the platform.
The group claims its gross revenue grew by more than 600 per cent year-on-year in 2020, as it strategically adjusted to shifting market dynamics to meet increased consumer demand for fresh, high-quality produce during the COVID-19 crisis.
In tandem, TaniHub Group has provided strong support for farmers to weather the pandemic by creating new markets for their produce and positively impacting rural communities as a trusted partner for farmers.
“Tanihub Group has an important role in transforming the agriculture sector and has proven that its presence can deliver positive impact to the quality of life of farmers. We hope our investment can help them continue their work and expand their coverage to more and more farming communities in Indonesia,” said Sandhy Widyasthana, Director of Portfolio Management at MDI Ventures.
“TaniHub Group’s business model is a unique combination of sourcing network, demand aggregation, and embedded finance that is a win-win proposition for all stakeholders, including small farmers, street vendors, small business owners, and household consumers,” said Smita Aggarwal, Global Investments Advisor at Flourish Ventures.
In the past, the group has raised multiple rounds of investments in the past. In April last year, it closed a US$17 million Series A+ round of investment, co-led by Openspace Ventures and Intudo Ventures.
A year earlier, it secured US$10 million in Series A round led by Openspace.
Image Credit: TaniHub
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,TaniHub lands US$65.5M Series B to empower Indonesia’s 40M small farmers through tech, financing | e27
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