Eratani closes Series A to boost food security and rice production across Indonesia

[Disclosure: AgFunderNews’ parent company AgFunder is an investor in Eratani.]

Indonesia-based Eratani has closed a $6.2 million Series A funding round for its ag marketplace that helps farmers digitize their operations, boost productivity, and better meet demand for rice.

Agrifoodtech investor Clay Capital led the round with participation from SBI Venture, TNB Aura, AgFunder, Genting Ventures, and IIX.

Eratani will use the funding to expand its presence across Indonesia, strengthen collaborations with local partners, and introduce new precision-farming technologies to enhance efficiency.

A ‘community-driven’ approach to agtech integration

Indonesia faces a rising demand for rice coupled with a decline in the number of farmers to produce the crop. By some accounts, the number of agricultural workers in the country has fallen from around 70% in the 1970s to 28%.

These factors, along with dwindling farmland availability and climate change, make technology a need, rather than a luxury for Indonesia’s 28 million smallholder farmers.

But Eratani CFO/COO Bambang Cahyo Susilo says that digital tools can’t simply be forced onto smallholder farmers, many of whom do not even own a smartphone.

“There are so many players in Southeast Asia framing themselves as Silicon Valley-like startups with technology,” he tells AgFunderNews. “But smallholder farmers will never buy this kind of technology.”

In part, this is because many smallholder farmers still lack the technical know-how to use it. For example, smartphone usage amongst smallholder farmers in Indonesia is still below 50%.

Financial literacy is also limited, adds Susilo, with less-formalized deals often leading to poor returns for farmers.

Eratani’s main goal is to assist these farmers with a digital transition that remains sensitive to the above factors.

Its founders all come from agricultural backgrounds and small villages in Indonesia, which gives the company a “deeper understanding” of smallholder farmers’ needs, says Susilo. One of those needs is an approach to agtech that considers the farming community as a whole.

“We combine traditional farming practices with technology,” he notes, adding that this is a crucial combination.

“By having a community-centric approach, it’s accelerating and speeding up the decision maker. If one farmer in a community understands the value of using Eratani’s platform, the remaining will follow, so you never have to knock door to door. The whole approach is very community driven, and driven by our farmers.”

“Eratani is redefining what’s possible for smallholder farmers in Indonesia,” Gerard Chia, partner at Clay Capital, told AgFunderNews.

“As the ‘connective tissue’ in a highly fragmented rice farming ecosystem, their farmer-first, integrated model sets them apart from typical agritech platforms. Beyond improving farmer livelihoods and productivity, Eratani has the potential to drive systemic change by introducing sustainable farming practices and creating future opportunities for farmers as carbon markets continue to evolve.”

‘Measurable, sustainable benefits to smallholder farmers’

Eratani currently manages 13,498 hectares and supports more than 34,000 rice paddy farmers across multiple parts of Indonesia.

Its “end-to-end” farming solution enables smallholder farmers to access tools for upstream concerns (funding, inputs, etc.) all the way through to those downstream (e.g., access to customers).

“Eratani’s integrated approach to strengthening the rice value chain—leveraging technology to enhance crop yields, improve farmer livelihoods, and boost food security—is a great example of the innovation we believe is critical for the future of agriculture in Southeast Asia,” says John Friedman, Asia director at AgFunder.

“Their ability to deliver measurable, sustainable benefits to smallholder farmers while driving systemic improvements in Indonesia’s food system is what makes Eratani such a compelling investment. We look forward to supporting their continued growth and impact.”

The Eratani platform offers three different solutions for farmers:

• Through EraFarm, farmers can access capital, agronomic assistance, inputs and technology, planning tools, and insurance options.
• EraKios partners with local input retailers to distribute reliable products to farmers at reasonable prices, addressing a major need in the agrifood supply chain in Southeast Asia.
• EraMarket addresses yet another issue, that of access to market. Eratani purchases farmers crops at what it says are fair and competitive prices.

Eratani says its platform led to a 29% increase in yield and a 25% rise in farmer income in 2024. Farmers also reported producing 112,660 tons of grain and rice that year.

Indonesia currently imports around 65% of its food, including rice. The government has in recent months introduced ambitious plans to change this and boost food sovereignty in the country by 2027.

Eratani founder and CEO Andrew Soeherman says the company is “fully committed” to supporting this goal.

“Rather than prioritizing rapid expansion, we focus on building a strong foundation to scale strategically into key districts, ensuring long-term value for farmers and the agricultural ecosystem,” he notes.

Susilo adds, “As digitalization plays an increasingly vital role in agriculture, Eratani leverages data-driven insights to reinforce its risk mitigation framework and refine its growth strategies. This strategic approach enhances operational efficiency, strengthens decision-making, and fosters a more resilient agricultural ecosystem while supporting our expansion into key districts.”