TaniHub Group Receives Series A Plus Funding of US$ 17 Million
Agro-technology-based startups (agritech), TaniHub Group officially get an extension of the Series A or Series A Plus funding round of US $ 17 million.
The funding was led by Openspace Ventures with Intudo Ventures, with the participation of new investors; UOB Venture Management, BRI Ventures Vertex Ventures, Golden Gate Ventures, and Tenaya Capital.
With the injection of funds, the total equity funding that the company has achieved has reached US$ 29 million since 2016. Pamitra Wineka, President and Co-Founder of TaniHub Group said that since achieving Series A funding last year, TaniHub Group recorded rapid business growth, which is more than 300 percent.
TaniHub ecosystem is now consisting of more than 30,000 small-scale farmers across nation. Furthermore, he added, TaniHub currently has five branch offices and distribution centers, namely in Bogor, Bandung, Yogyakarta, Surabaya, and Denpasar. The company plans to open three more branches to expand its reach nationally and provide a smoother supply chain process from upstream to downstream.
Demand for Fresh Food Products Increases during Corona Outbreaks
Despite facing the challenges of the Coronavirus outbreak (Covid-19 pandemic), he claims it continues to meet the increasing demand for fresh food products and quality staples, both from B2B and B2C customers, supported by an extensive supplier network and smooth distribution process.
“We have invested in the supply chain aspect to ensure the safety of food products (food safety) from upstream to downstream through the implementation of ISO 22000 (HACCP) and Halal Assurance System (HAS) or Halal Assurance System. TaniHub has implemented a number of precautions to prevent outbreaks, such as checking body temperature to ensure that sick employees are not allowed to enter warehouse facilities,” he explained.
Meanwhile, TaniFund, a peer-to-peer (P2P) lending platform under the auspices of the TaniHub Group, has provided cultivation financing and sales transactions to farmers with limited access to formal financial institutions.
Ivan Arie Sustiawan, CEO and Co-Founder of TaniHub Group said that his party has channeled more than Rp 100 billion in financing and has partnered exclusively with Indonesia’s largest philanthropic institution, Dompet Dhuafa, since 2019 to reach breeders on the island of Java.
Ivan explained that his company will continue to strengthen the supply sector through its partnership with farmers. He also revealed that increasing consistency, productivity and regeneration will continue to be carried out to support farmers.
“Through this platform, farmers have recorded an increase in income of 20 percent, while farmers who also partner with TaniFund have seen their income increase by 50 percent, “he explained.
Investors Support Tanihub’s Philosophy to Advance Indonesia’s Agriculture Sector
Meanwhile, Managing Director and CEO of UOB Venture Management Seah Kian Wee is optimistic that agriculture is an important sector in Indonesia so that all improvements made for efficiency in this industry can help ensure the welfare and survival of the lives of many people and the wider community.
“We support the TaniHub philosophy which is oriented towards social impact through empowering small farmers. We are waiting for TaniHub to make various improvements and opportunities that will be created for Indonesia’s agricultural supply chain, “he explained.
BRI Ventures CEO, Nicko Widjaja believes that the agricultural sector is very important in Indonesia, and is one of the important pillars for the nation’s future economic growth. “We believe that this form of ‘smart-funding’ is needed by farmers. In addition, assisted by the experience of Bank BRI, we can increase the scale of Indonesian farmers’ business faster and better,” he said.
TaniHub Group plans to use the funds received to strengthen market penetration, accelerate expansion in reaching new farmers and consumers, improve operations, and implement existing automation solutions in the product packaging and processing center.