TaniHub Intensively Expands to Regions after Receiving IDR 942 Billion
Agricultural startup, TaniHub Group, received funding of US$ 65.5 million or around IDR 942 billion. The startup company is optimistic that it can grow threefold with this additional capital.
This investment is led by MDI Ventures. Other participating investors are Telkomsel Mitra Inovasi (TMI), Add Ventures, BRI Ventures, Flourish Ventures, Intudo Ventures, Openspace Ventures, Tenaya Capital, UOB Venture Management, and Vertex Ventures.
TaniHub Group CEO Pamitra Wineka said the business would grow 639% in 2020. With additional capital, the company is optimistic that it can grow three times this year.
He also said that last year was also the first moment for TaniHub Group to expand outside Java, starting with Bali. The company also manages six warehouses and a Processing and Packing Center (PPC).
“The agricultural sector in Indonesia is not connected because there are many small players with limited service coverage areas. As a result, inefficiencies in the value chain are inevitable,” said Pamitra in a press release, Friday (21/5).
Therefore, the fresh funds will be used for geographic expansion through the construction of various mini-hub facilities. This development is supported by local governments in Indonesia.
“We plan to strengthen the role in every region of Indonesia to be closer to farmers and the community. In the end, what we are doing can reduce the price disparity between farmers and consumers,” he said.
Developing Company Products and Services
The fresh funds will also be used to develop products and services, through strengthening technology. MDI Ventures Portfolio Director Sandhy Widyasthana assessed that the TaniHub Group plays a major role in agriculture.
“We hope this investment will help the TaniHub Group continue the program and expand coverage to more farming communities in Indonesia,” he said.
He also emphasized that MDI, under Telkom and the Ministry of State-Owned Enterprises (BUMN), will continue to invest in technology startups that play a major role in various sectors that affect society.
Global Investments Advisor Flourish Ventures Smita Aggarwal added, TaniHub Group’s business model is a unique combination of supplier network, demand aggregation and finance.
“This is integrated in a balanced proportion for stakeholders, including small farmers, street vendors, small business owners, and household consumers,” he said.
He assessed that the TaniHub Group offers interesting solutions to problems in the agricultural sector in the archipelago.
That’s because the business model allows market linkages and financial access for farmers. Hence, Flourish Ventures is participating in the TaniHub Group Series B funding round.
Tanihub Targets Company Data System Accuracy Reaches 95%
A startup in the field of Agriculture (Agritech), Tanihub targets the accuracy of company data of up to 95 percent for their business operational needs.
Tanihub Group Chief Technology Officer Kelvin Wijaya said the high-tech data analytics, machine learning, and artificial intelligence helped them to better understand stakeholders, farmers and consumers.
“We want our system to have an accuracy of up to 95 percent and we continue to develop our technology to avoid and minimize existing anomalies. In fact, about 1/6 to 1/5 of our budget is used to develop our technology,” said Kelvin, Sunday (9/5/2021).
According to him, the application of technology can increase the productivity and competitiveness of farmers by synthesizing the potential and growth mechanisms of digital technology for the domestic agricultural sector.
“There are many uses of this technology, one of which is forecasting and the second is operational, meaning automation and optimization. For the forecast, we try to see the market situation in Indonesia which is quite complex with the data,” he said.
According to him, the role of data also provides efficiency in measuring the speed of the performance process and the consolidation process that companies need in the field so that the two processes can complement each other.