Deal Street Asia: Indonesian AgriTech Startup Eratani Raises Additional US $2M in Seed Funding
Written by: Khamila Mulia
Edited by: Pramod Matthew
10 July 2023
Eratani, an Indonesia-based agritech startup, has bumped up its seed funding to US $5.8 million after raising an additional US $2 million, according to a statement on Monday.
The round includes the
$3.8 million that Eratani raised in 2022
from TNB Aura, AgFunder, B.I.G Ventures, and Trihill Capital, while the fresh US $2 million seed extension funding round was led by SBI Ven Capital through its joint fund with Kyobo Securities and NTUitive. Genting Ventures, Orvel Ventures, and Ascend Angels also participated int he round.
The startup plans to utilise the investment to expand its reach across five provinces in Indonesia to further improve efficiency and create social impact among rice farmers.
“This investment not only validates our business model but also echoes our conviction in the potential of Indonesia’s agritech. We are committed to continuing our work in empowering farmers, increasing efficiencies, and fostering business sustainability within the agricultural sector,” said Eratani CEO Andrew Soeherman in the statement, adding that this funding round shows investors’ confidence in the Indonesian agritech sector.
Founded in 2021, Eratani offers solutions such as funding, supply chain management, crop distribution, and agricultural assistance to farmers in the country. It currently works with a network of 20,000 rice farmers in West Java, Central Java, East Java, Banten, and South Sulawesi. Eratani currently works with financial institutions like BNI and Nobu Bank to fintechs like Koinworks to channel the fund to farmers under its ecosystem.
“Their [Eratani] holistic approach and innovative solutions are not only streamlining agricultural processes but also
creating social impact for farmers. We remain confident in Eratani’s ability to drive growth and transformation in
the agricultural sector,” said Ryosuke Hayashi, CEO of SBI Ven Capital.
Indonesia is a major agricultural nation. In fact, agriculture, forestry, and fishing sectors contributed about 12.4% of
the country’s gross domestic product [GDP] in 2022, according to Statista. However, the sector faces various
challenges including lack of investments, climate change, middlemen trap, and the slow adoption of technology.
This situation prompted a number of tech-enabled startups to emerge over the past few years. Besides Eratani, other
notable names in the sector include EdenFarm, Sayurbox, Gokomodo, and AgriAku.
Nonetheless, a few agritech-related startups are in hot water. TaniHub discontinued services and laid off all
employees while LinkAja-owned agritech fintech lender iGrow is being sued by its retail lenders due to surging