TaniGroup Secures Series A Funding Worth 143 Billion Rupiah

TaniGroup announced that it has successfully secured Aeri A funding of $10 million or equivalent to 143 billion Rupiah. The funds will be used to expand business and invite other agricultural startups to collaborate to advance the agricultural sector in Indonesia.

This funding round was led by Openspace Ventures. Also involved are Intudo Ventures, Golden Gate Ventures and The DFS Lab, an accelerator fintech funded by the Bill and Melinda Gates Foundations.

With the funding obtained, TaniGroup hopes to trigger rapid business growth in 2019, so that more farmers and buyers can benefit. TaniGroup believes that collaboration with multiple stakeholders is the key to solving problems in Indonesia's agricultural sector.

TaniGroup will work closely with the central government, local governments, local and international organizations, including other agricultural startups to build a bigger platform.

"In the near future, we would like to invite agricultural startups to collaborate because Indonesian agricultural cakes are still big and very traditional. There are many big problems to be solved, many farmers still need help, and also the opportunity to build a stronger supply chain in order to provide good agricultural produce to the people of Indonesia at the best price," said CEO of TaniGroup Ivan Arie Sustiawan.

Since its establishment in mid-2016, TaniHub has partnered with more than 25.000 local farmers throughout Indonesia and operate five branch offices and regional distribution centers in Jakarta, Bogor, Bandung, Yogyakarta and Surabaya.

TaniGroup itself currently has two types of services. First TaniHub, a platform that allows users to get fresh agricultural produce directly from farmers. This service has a B2B and B2C approach. Currently, Tanihub has succeeded in connecting farmers with 400 SMEs and more than 10.000 individual users.

The next service is TaniFund, help farmers to get loan funds for agricultural cultivation projects. With the connection to the TaniHub platform, both borrowers and lenders will get clarity on status and agreements. TaniFund is officially registered and supervised by the Financial Services Authority (OJK) and is also a member of the Indonesian Joint Funding Fintech Association (AFPI).

"Our main mission is agiculture for everyone. Although agriculture is the second largest contributor to Indonesia's gross domestic product, many people have not had any relationship with the sector for a long time due to negative perceptions. Working as a farmer is not in demand when compared to other jobs, and the majority of consumers are not directly related to their source of food supply," said Pamitra Wineka, Co-Founder & President of TaniGroup.