Elevarm Receives Additional Investment of IDR 16 Billion from Amartha, Rabo Foundation, and Scala

Startups agritech Elevarm received another funding injection of $1 million or the equivalent of IDR 16 billion. This investment round involves startups fintech Amartha, Dutch financial service "Rabo Foundation", and Japanese information technology company "Scala".

Previously in May 2024, Elevarm also recently announced initial funding of $2,6 million led by Insignia Ventures Partners from Singapore, also involving participation from 500 Global and Gibran Huzaifah, leader of startup eFishery.

In its statement, Elevarm said that the funds would be used to develop their pro-farmer financing products. This step aims to make it easier for small farmers to obtain agricultural inputs on safe credit, improve cultivation practices to increase productivity, and increase their financial literacy.

Over the last six months, more than 200 farmers have benefited from this financing program, with total funds distributed reaching $150 thousand or the equivalent of IDR 2,4 billion. With this partnership, it is hoped that the number of farmers assisted will increase to 1.000 people with total funding reaching $1,5 million or IDR 24,3 billion by the end of 2024.

Elevarm Co-founder & CEO Bayu Syerli Rahmat stated that this partnership is a big step in connecting global expertise with local agricultural roots.

"With our productive financing model, we not only increase productivity in the long term but also help farmers do what they do best: feed Indonesia and the world," said Bayu.

Elevarm also plans to launch more agricultural input products this year, including bio-stimulants and bio-pesticides. The company's main focus is supporting small farmers who still have difficulty accessing safe and reliable financing, and lack knowledge about best agricultural practices.

Apart from providing quality agricultural inputs, Elevarm will also guarantee the purchase of crops from farmers under their financing programs, including crops that do not meet standards. This step ensures stable and secure income for farmers every season. Farmers' harvests will also be insured by insurance provider partner Elevarm for risk protection.

Amartha Chief Risk and Sustainability Officer Aria Widyanto added that this collaboration is part of Amartha's commitment to encourage inclusive growth in the grassroots economic sector, especially in the agricultural sector.

"By combining our AI-based risk profiling technology with Elevarm's business model which utilizes scientific data and advanced operational technology, we believe this collaboration can improve farmer welfare in a sustainable manner," said Aria.

Scala Global Business Director Ryo Ishihara also stated that Scala is pioneering a new project financing scheme that creates a win-win solution for farmers, agricultural management companies and investors.

"With extensive experience in this field and a deep understanding of the agricultural landscape in Indonesia, we chose Elevarm as a strategic partner," said Ryo.

-