Agriaku Receives IDR 86 Billion of Pre Series A Funding from Go Ventures
Agriaku, an agriculture startup aims to create a transparent network between all stakeholders in the agricultural product supply chain system. This round was also attended by MDI Arise, MDI Centauri, Mercy Corps Social Venture Fund and several “angel investors”.
Agricultural startup focused on supply chain solutions, AgriAKU, announced the acquisition of Pre-Series A funding of $6 million or more than 86 billion Rupiah led by Go-Ventures. The previous investor, MDI Arise, also participated, followed by MDI Centauri, Mercy Corps Social Venture Fund, and several angel investors.
The company plans to use this fresh fund for three things; Develop teams aggressively in the areas of operations, supply chain, product and technology; Strengthening the penetration of agri-supply B2B marketplaces across the country; and Enriching innovation and capability of the product ecosystem to improve the agricultural value chain in Indonesia.
Agricultural Industry in Indonesia Contributes to the Economy
Indonesia’s agricultural industry is considered to have a significant contribution to the economy, around 13.5% of GDP. However, upstream agricultural markets are highly fragmented with unorganized value chains for agricultural supplies such as seeds, fertilizers and chemicals.
Both farmers, suppliers and retailers face the same problems – supply and price instability, inefficient manual workflows, and limited access to formal finance.
“AgriAKU’s B2B input market platform is ideally positioned to increase price transparency and market access for all stakeholders in the agricultural input sector. Over time, we hope that AgriAku can significantly increase farmer productivity and improve farmers’ standard of living,” said Partner Go-Ventures. Aditya Kamath.
AgriAku, which was founded by Irvan Kolonas and Danny Handoko in 2021, has a mission to create a transparent network between all stakeholders in the agricultural product supply chain system.
One approach, they build a market called “Farmers Shop”, connected with first-tier producers or distributors. This method is claimed to allow farmers to get a complete catalog of agricultural products at a much more affordable price.
At the end of last February, the company officially introduced the update of the AgriAku application for Partners on the Google Play Store. This platform provides the most complete range of agricultural products compared to ordinary farmer shops, ranging from seeds, medicines and nutrients, fertilizers and also agricultural tools.
With Agriaku’s recording and cash register system, agents can also make accurate digital records so that they can simplify their work and accelerate business development. Agri Aku is not the first agricultural startup funded by this Gojek investment unit.
Previously, Go-Ventures also led the continued funding of online grocery startup Segari and several startups with similar business models, including eFishery (Fresh), FoodMarketHub, and KitaBeli. This strategic action strengthens Gojek’s efforts to strengthen the online grocery line.
Agriculture Startups In Indonesia
Indonesia has been known as an agricultural region and has exported many commodities and foodstuffs around the world for hundreds of years. However, until now, the agricultural industry is still considered not to provide a fair opportunity for farmers to improve their quality of life and business.
With Indonesia contributing around 280 million of populations in the world, the role of the agricultural sector will be even greater to meet the growing human needs.
These are fragmented and inefficient supply chains, limited access to capital, lack of access to technology, and price uncertainty due to climate change.
While this sector has enormous industrial potential, its value could exceed up to $500 billion of global GDP by 2030. Asia Pacific itself has the potential to contribute 8.2% of the total value.
Seeing this trend in global arena, investment in agritech sectors also continues to increase from year to year. There were approximately 834 funding deals, accounting for more than $6.7 billion in 2020.