Agricultural Startup TaniHub Reviews Company Acquisition and IPO
Startup in the field of agriculture, TaniHub Group received funding of US$ 65.5 million or around IDR 942 billion three weeks ago (21/5). TaniHub is also reviewing the listing of initial shares or IPOs and the acquisition of other companies.
TaniHub Group CEO Pamitra Wineka said it took time to get listed on the stock exchange. “We are preparing. However, not sure when. What is certain is that in the next three years, I think it is quite okay,” he said in a virtual executive interview, Monday (31/5).
On that occasion, he also commented on the potential for mergers and acquisitions of other companies. The man who is familiarly called Eka explained that corporate action has the potential to accelerate the company’s efforts to grow and promote efficiency.
“That’s because there are several (companies) that are strong in business to business (B2B) and business to consumer (B2C),” said Eka.
Meanwhile, TaniHub is strong in the upstream side, namely taking agricultural products and processing them through a warehouse and Processing and Packing Center (PPC).
“If we can join forces with players who work on specific niches, maybe it can add (growth) to business and impact on farmers,” he said.
Company Assesses Possible Mergers and Acquisitions
Mergers and acquisitions are also being studied because the company targets to attract one million farmers. Eka conveyed that managing the yields of one million farmers was not an easy thing.
Therefore, the company is reviewing the possibility of mergers and acquisitions. However, so far TaniHub has not yet determined which startups or sectors to target. To be sure, he is targeting startups that can help farmers.
In addition, TaniHub plans to seriously review mergers and acquisitions after obtaining series C funding. Eka said the company might raise new investments next year.
“The cash (from series B funding) has just arrived and there are still a lot of it. But we prepare at least a year from now for the C series. The value is big, so we must prepare from now on, “he said.
Investors from venture capital circles predict that exit strategies in the form of IPOs and startup consolidation will be widespread this year. The strategy for exit is a planned approach to ending investment in a way that will maximize profits and/or minimize losses.
“Startups, especially those with growth stages, will look to more aggressive investment options such as IPOs,” said CEO of Mandiri Capital Indonesia Eddi Danusaputro, on March (17/3). “Maybe after getting series B funding.”
Meanwhile, startups that are able in seeking funding are considered to be eyeing acquisitions. It aims to achieve growth in non-organic, product, or digital talent.
“It is better for startup growth stages or those that have passed several funding rounds,” said Eddi. However, the potential for this IPO and consolidation depends on the sector and area of operation.
TaniHub Startup Invests Massively in Agricultural Infrastructure
An agricultural startup, TahiHub, uses most of the funds to build infrastructure such as warehouses and the Processing and Packing Center (PPC).
This aims to minimize the potential for product damage. TaniHub Group CEO Pamitra Wineka said that the agricultural sector in Indonesia needed end-to-end solutions.
Currently, TaniHub has six warehouses and PPC. The man who is familiarly called Eka said that the entire warehouse capacity and facilities will be increased.
He gave an example, there are several warehouses and PPCs with an area of 500 to 1,000 square meters. This will be increased to 5,000 to 8,000 square meters.
Then, add a variety of cold chain facilities or supply chains that are controlled from the temperature side. “There are (products) that need frozen, some only need cold,” he said. This is because the company wants to increase the type of product being traded.
Eka explained that the warehouse is located near the end customer. While PPC is closer to farmers. This aims to make farmers send their crops to the TaniHub facility more quickly.