Agri-biotech Startup Hyoshii Farm Announces Seed Funding from Angel Investor Consortium

Startups agri-biotech Hyoshii Farm announced that it has received initial funding from the consortium angel investors with the nominal being kept secret. It was stated that this round involved a series of private conglomerate companies in various industries, as well as additional independent investment from the founders.

Founded in 2021 by William Rayawan, James Rayawan, and Anthony Lee; Hyoshii Farm has a vision of becoming the best fruit producer in Indonesia through collaboration with local farmers, improving the quality of local production to compete with premium fruit which is mostly imported. With the right technology, human resources and resources, this startup wants to be a pioneer in changing the quality and experience of buying local fruit.

"Our mission is to bring happiness to the Indonesian people through high quality local fruit. By prioritizing good and environmentally responsible plantation processes, we hope that more people will enjoy the health benefits of fresh plantation produce from their own country. Hyoshii Farm also wants to inspire and empowering the younger generation to join us to answer challenges and take advantage of opportunities in the Indonesian agricultural sector," said Hyoshii Farm Co-Founder & CEO James Rayawan.

Starting with strawberries

Currently Hyoshii Farm sells strawberries and various derivative products. Apart from being sold to final consumers through various supermarket (Rach Market, Papaya, etc.), they also sell products to B2B partners. In the current phase, the main distribution focus is still in the Jakarta, Bandung and Surabaya areas --- and continues to widen.

Regarding strawberry cultivation, Hyoshii Farm also collaborates with a number of farmers, one of which is based in Lembang, West Java. One of the cultivated variants is a strawberry called Hatsu Hana, which is claimed to have premium quality, sweet taste, strong aroma, and looks reddish in luster.

Even though it is not an endemic fruit commodity from here, a number of plantation areas in Indonesia (especially in the highlands) are quite suitable for strawberry breeding. However, there are challenges in cultivating quality fruit. Careless planting results in poor fruit quality -- from the small shape, sour taste, to dull color.

It is known that the local market has quite a big interest, as evidenced by Indonesia being the 7th importing country for Korean strawberries in the world. However, according to BPS data, strawberries are the least produced fruit in 2021, with a total of 9.860 tonnes, of which 6.458 tonnes came from West Java. The comparison is quite far from banana production which is at 8,7 million tons.

Next plan

The fresh funds obtained will be used by Hyoshii Farm primarily to expand production facilities, including the construction of a sophisticated greenhouse and also greater investment in research and development efforts. By prioritizing innovation and productively planting strawberries that are more ideal for tropical climates, Hyoshii is committed to fertilizing the seeds of a revolution in Indonesia's agricultural landscape. Fresh funds will also be used to increase the production area 3x.

It was also conveyed that during the first three years of operation, this startup claimed that the operating margin was already profitable, and the company would not allocate initial funding to cover operational costs. Hyoshii has recorded a more than 10x increase in product demand in the past year, despite imported berries flooding the Indonesian market.

Hyoshii also established a new business unit this year as part of further strategic steps to respond to growing demand. This new unit will reach certain customers and farmers to distribute superior seeds, fertilizers and medicines, training and distribution of quality crops under the Hyoshii brand.