Crowde Agricultural Investment Platform Makes It Easy for Farmers to Get Capital

Crowde is an investment platform that specializes in agriculture, established since September 2015. This platform seeks to improve the welfare of farmers to have venture capital assistance in a digital way.

CEO Crowde Yohanes Sugihtono explained that Crowde was established to bridge the capital needs that are often experienced by farmers with investors who are interested in investing in the agricultural sector. The current condition is that many farmers are being targeted by loan sharks and middlemen because they are not bankable customers.

"Farmers in Indonesia have a lot of problems from upstream to downstream and farmers are always the victims. We see this and want to help them to connecting each other by solving their problems in the field of financing," he explained to DailySocial.

In terms of business model, Crowde is almost similar to other investment platforms. Investors can be involved in a project with a minimum fund of IDR 10. However, what is slightly different is that Crowde's business model works on a profit-sharing basis with the sharia method. This step is considered more of a solution for farmers.

Take for example, if you make an investment of Rp. 10 thousand. When a project makes a profit of 10%, the yield given is Rp. 11 thousand. However, when the farmer loses 5%, the yield becomes IDR 9.500.

For monetization, Crowde adopts a commission system of 3% for each successfully funded project as needed.

Yohanes continued, Crowde has not only provided investment projects in the agricultural sector, but has also moved into the fisheries, livestock, and even fisheries sectors trades. This is intended so that investors can diversify their risk into various projects.

Investors also have the opportunity to visit and learn directly from the projects they invest in. If they are interested in pursuing it as entrepreneurs, Crowde will help make it happen.

An investment platform that is specifically engaged in agriculture (or other), is not only enlivened by Crowde. Other players including Eragano and iGrow.

Strict selection

Yohanes explained the main requirements that farmers must have before joining Crowde, they must have experience in the field, there is a market to sell, and only need funds to develop their business.

"Crowde works closely with various parties from companies, exporters, startups, and cooperatives to recommend which farmers are suitable and have the potential to be assisted."

After that, to select projects before they are eligible for investment, Crowde performs a number of risk analysis. Starting from the risk of planting to price and market fluctuations. Crowde also provides a standard analysis of each project that is presented and informed in each project on the platform.

"From an investor's perspective, to maintain their risk, they are required to choose projects with different risk standards. Crowde is like the stock market, but the project is the real sector. Therefore, investors must diversify themselves, Crowde is in charge of providing the information."

The yield range offered by Crowde for investors is around 1,5% to 30%. The amount of yield will depend on a good harvest season and soaring prices like chili peppers some time ago.

Target Crowde

Yohanes claims that currently Crowde has succeeded in 100 projects with funds reaching Rp. 3 billion. It is hoped that this year, he will double the number of successful projects to more than 1.500 projects throughout Indonesia with 10 thousand investors.

"We want to continue to expand throughout Indonesia, reaching farmers who have not been able to reach in terms of their agricultural projects. We also want to reach more investors, because Crowde is not an investment for people who have a lot of money."