Indonesian agritech startup TaniGroup, which operates agriculture products e-commerce platform TaniHub and peer-to-peer (P2P) lending platform TaniFund, today announced a US$10 million Series A funding round led by Openspace Ventures.
Intudo Ventures, Golden Gate Ventures, and The DFS Lab, a fintech accelerator funded by the Bill and Melinda Gates Foundation, also participated in the funding round.
The funding round is one of the biggest ever raised by an agritech startup in Indonesia, particularly at Series A stage.
Earlier today, Kedai Sayur announced a US$1.3 million seed funding round by East Ventures.
TaniGroup plans to use the new funding to support its nation-wide expansion and product development.
“In the near future, we want to invite other agriculture startups to collaborate because Indonesia’s agriculture space is still large and very traditional. There are big problems to address, a lot of farmers still in need of help, and the chance to build a stronger supply chain to deliver great produce to Indonesians at best cost,” said TaniGroup CEO and Co-Founder Ivan Arie Sustiawan in a press statement.
Established in 2016, TaniHub aims to cut the need for a middleman by helping farmers sell fresh produces directly to businesses such as restaurants through their online platform. In addition to the B2B line of their business, it also embraces the B2C segment by launching a mobile e-commerce app.
TaniHub claimed to have connected farmers with more than 400 small and medium enterprises (SMEs) as well as over 10,000 individual customers. It has partnered with more than 25,000 local farmers across Indonesia and operates five regional offices and distribution hubs in Jakarta, Bogor (West Java), Bandung (West Java), Yogyakarta, and Surabaya (East Java).
As for TaniFund, it provides lending for cultivation projects by farmers who may otherwise lack access to formal financial institutions. By linking with TaniHub, more clarity is provided to both borrower and lender on credit standing and terms.
TaniFund is registered with the Financial Services Authority (OJK) and a member of Indonesian Fintech Lenders Association (AFPI).
Image Credit: TaniGroup