Eratani Receives Initial Funding of 57 Billion Rupiah

Startups agritech Eratani obtained early-stage funding (seed funding) $ 3,8 million or the equivalent of 57 billion Rupiah. The round was led by Singapore-based investment company TNB Aura, and was attended by AgFunder, BIG Ventures and their pre-initial investor, Trihill Capital.

The Founding Partner of TNB Aura Vicknesh R. Pillay assesses the many challenges within the national agricultural supply chain. "However, we believe Eratani has an approach farmers-centric in increasing sustainable food security in Indonesia," he said in an official statement.

Previously, Eratani accepted pre-start funding of IDR 23 billion led by Trihill Capital, as well as participation from Kenangan Kapital and Kopital Network. This funding was used to assist more than 10.000 assisted farmers in Java Island with a total of 8.000 hectares of paddy fields and have contributed more than 52.000 tons of rice in one year.

Eratani was founded by Andrew Soeherman (CEO), Kevin Juan Tanggo Laksono (COO), and Angles Gani (CPO) in June 2021. Its mission is to provide comprehensive assistance to Indonesian farmers by facilitating access to business capital and building ecosystems from upstream (upstream) to downstream (downstream).

Meanwhile, this mentoring program aims to increase the productivity of Eratani's assisted farmers from the beginning to the end of the planting process. This assistance includes checking soil pH, plant care, how to deal with pest attacks, providing quality agricultural production facilities, to distributing crop yields at standardized prices.

The next plan

"This round will make us stronger and more aggressive in developing Eratani through our direct contribution in maximizing agricultural potential in Indonesia," Eratani Co-Founder & CEO Andrew Soeherman.

Eratani will perfect the mentoring program to maximize farmer productivity, expand to new target areas, digitize agricultural processes, and develop human resources and technology. It projects that it can partner up to 50.000 assisted farmers by the end of 2024.

In addition, Eratani will also maximize the collaboration he has with the Indonesian Ministry of Agriculture and the Indonesian BULOG to develop agricultural ecosystems in Indonesia and initiate a mission of self-sufficiency in food in Indonesia.

In previous interview with DailySocial.id, Andrew revealed that there are two main issues faced by the agricultural sector, namely (1) 98% of processes from upstream to downstream have not been digitized and (2) 93% of farmers are still carrying out their own and disorganized business activities.

Based on research McKinsey Previously, as much as 50% -70% of Indonesia's crops never reached the market. McKinsey estimates that the productivity of farmers in Indonesia must increase by 60% if it is to meet the food needs of 280 million people. This can also be realized if farmers are able to increase crop yields, reduce post-harvest losses, so that they can distribute them to big cities.