Immediately Complete Series B Funding, TaniHub Intensively Builds Infrastructure Outside Java

Startups agritech TaniHub revealed that it will soon announce series B funding which is claimed to have the largest nominal throughout Southeast Asia for startups in its vertical. This funding will be used to strengthen the company's plans to play outside Java by building business support infrastructure.

Less than a year ago, TaniHub announced Series A+ pendanaan funding in April 2020 for $17 million led by Openspace Ventures and Intudo Ventures.

In a virtual conference, TaniHub Group President Pamitra Wineka was not willing to mention further regarding this fresh fund. He only said that this funding is still in the process of being finalized and it is estimated that it will only be announced in a month. Investors' enthusiasm for this round was claimed to be so enthusiastic, oversubscribed of the targeted funds.

"We want to contribute these funds back to farmers in Indonesia. We want to expand where we can reach more farmers, hopefully can reach Papua,” he said, Thursday (21/1).

The company plans to build a regional distribution facility (DC), a product processing and packaging center (processing packing center/PPC), poultry processing center (poultry processing center/PPC), national warehouse (national fulfillment center/NFC), and rice mills at various points. Several locations, such as North Sumatra, Riau, Palembang, Lampung, Banjarmasin, Banjarmasin, Manado, and Makassar.

Currently, the PPC location that is fully operational is in Malang which supports supply chains from various regional distribution facilities spread across five cities, namely Bogor, Bandung, Kartasura, Surabaya, and Denpasar.

Director of Supply Chain TaniHub Group Sariyo said, PPC in Malang has been operating with almost maximum capacity. He appreciated the very good response in the field because PPC serves to streamline the distribution process and reduce the risk of damage.

"We build PPC to see from its location whether in the area has source [farm produce] a lot. If so, this will be very helpful because the PPC must be close to the source area [of agricultural products],” he said.

In addition to expansion, this year the company will digitize the entire supply chain process by building its own data-driven automation system, no longer manually. Next, create a dedicated B2B consumer platform to accommodate specific processes to provide a much better transparency experience.

Last year's business achievements

On the same occasion, the company also boasted of its brilliant achievements over the past year. Co-Founder & CEO of TaniHub Group Ivan Arie Sustiawan claimed, the company became a company agritech the first to score GMV above Rp1 trillion with growth big income reached 639% in yoy.

There are more than 46 thousand farmers who have had a positive impact from the presence of TaniHub, one of which is an increase in farmer income by 20%. Described further, the largest revenue from TaniHub Group comes from the B2B business with a contribution of 80%, the rest comes from the retail business.

E-commerce TaniHub recorded new user growth of more than 250 thousand people from March to December 2020. The products that consumers buy a lot are chicken, dragon fruit, leaf vegetables, rice, eggs, avocado, spices, and melon. The total SKUs owned by TaniHub are now more than 1.700, almost double the previous 800 SKUs.

P2P lending TaniFund also made good achievements. Last year, it managed to channel funding of Rp89,2 billion through 243 projects in the food and agriculture sectors. There are 2500 affected farmers entering the TaniFund ecosystem because their production has increased by 20%.

Not only that, TaniFund's enthusiasm in increasing financial inclusion can be seen in the increase in the income of assisted farmers by an average of 25% with bank account ownership reaching 100%. TaniFund itself targets this year to increase its distribution of up to IDR 1 trillion to 10 farmers.