TaniHub Group Raises US$17mil in Series A Extension Round
By Digital News Asia April 2, 2020
- Roll out 3 new hubs to deepen coverage, provide smoother end-to-end supply chain process
- Building ecosystem to revitalize Indonesia’s agriculture system, farmers productivity & income
TaniHub Group, Indonesia’s leading agritech company, announced yesterday the completion of a US$17 million Series A+ round of financing, co-led by Openspace Ventures and Intudo Ventures, with participation from UOB Venture Management, Vertex Ventures, BRI Ventures, Tenaya Capital and Golden Gate Ventures. This brings its total funding raised to US$29 million since 2016. Its previous round was a US$10 million Series A in May 2019.
Established in mid-2016, TaniHub Group is leading the transformation of Indonesia’s fresh produce supply chain. Under a unified platform, the company links farmers together with multiple sources of customer demand, handling order management, logistics support and financing options.
The platform connects farmers with more than 5,000 business customers, ranging from small and medium enterprises (SMEs), hotels, restaurants, and catering services to food processing industry players as well as more than 115,000 retail customers. Over the past year, TaniHub Group’s business has experienced 3x year-on-year growth, while more than 30,000 smallholder farmers have joined the TaniHub ecosystem.
Pamitra Wineka, President and cofounder of TaniHub Group, says: “The revitalisation of farmers is crucial to Indonesia’s agriculture sector, which represents one of the most significant contributors to the country’s economy. Farmers need to improve their productivity and income as those are important factors to ensure young generations that the agriculture sector offers bright prospects. Our ecosystem of TaniHub Group is designed to help farmers achieve those dreams, and consumers can enjoy agriculture products at fair prices. This will enable ‘Agriculture for Everyone,’ which is our ultimate goal.”
Ivan Arie Sustiawan, CEO and cofounder of TaniHub Group, says: “TaniHub focuses on building infrastructure and supply chain, addressing some of the largest challenges in the agriculture sector. We are committed to strengthening our B2B partnerships, including small and medium businesses. We expect more robust growth for this year, and hope we can reach all cities throughout the country by 2022.”
“We are proud to co-lead this top-up round for TaniHub Group and welcome our new investors on board. In a time of volatility and relative capital scarcity, this round gives the company the firepower to keep building its technology to deliver on better logistics and larger capacity. Food security, safe supply, and empowering farmers and customers alike is crucial at this time, and these goals are consistent with TaniHub Group’s long term vision,” said Shane Chesson, Partner at Openspace Ventures.
“Recognising key pain points in Indonesia’s agricultural sector, TaniHub Group is able to directly support farmers, while enhancing the quality and supply of agricultural goods through targeted solutions,” said Patrick Yip, Founding Partner at Intudo Ventures. “We are excited to continue to support TaniHub Group as it creates an outsized impact on the lives of Indonesian farmers and improves the competitiveness of the country’s agricultural sector.”
Seah Kian Wee, Managing Director and CEO of UOB Venture Management, which manages the Asia Impact Investment Fund I that invested in the TaniHub Group, said, “Agriculture is a key sector in Indonesia, and the industry’s efficiency enhancements can help ensure the welfare and sustainability of livelihoods and communities. We are supportive of TaniHub’s impact-driven philosophy to empower smallholder farmers and look forward to the improvements and opportunities its platform will bring to Indonesia’s agricultural supply chain.”
Chua Joo Hock, Managing Partner of VVSEA fund, remarked: “We strongly believe that TaniHub has the best solution and business model to empower and help the farmers and their customers, especially the SME retailers, to get fair prices. Its end-to-end platform gives it the ability to offer best quality and best pricing. We are happy to participate in this new financing round and look forward to working closely together with Eka (Pamitra), Ivan and the TaniHub team to build Indonesia’s champion in agritech.”
"We believe the agriculture sector is one of the main pillars for Indonesia’s future economic growth. TaniHub Group is unique, besides its capability on digitising agriculture ecosystem, we see a growing opportunity in TaniFund. Its integration with TaniHub platform provides more visibility on the farmer's business and strong value-add to the farmer. We believe this kind of "smart-funding" is what the farmers needed. On top of that, by combining it with Bank BRI experience, we can scale Indonesia’s farmers faster and better,” mentioned Nicko Widjaja, CEO of BRI Ventures.
TaniHub currently operates five regional offices and distribution hubs in Bogor (West Java), Bandung (West Java), Yogyakarta, Surabaya (East Java) and Denpasar (Bali).
TaniFund, the Group’s P2P lending platform, provides cultivation and trade loans to farmers with limited access to formal financial institutions. Launched in 2017, TaniFund has disbursed over IDR100 billion (US$6 million) in loans to date. TaniFund is registered with the Financial Services Authority (OJK) and is a member of the Indonesian Fintech Lenders Association (AFPI).
As an essential line of support to farmers, the Group will continue to improve and streamline TaniFund’s operations to better serve its lenders and borrowers as well as adhere to new OJK regulations in the industry. Since 2019, the platform has been in an exclusive partnership with Indonesia’s largest charity fund, Dompet Dhuafa, to reach livestock farmers in Java.
With this round of financing, TaniHub Group aims to strengthen its market-leading position and accelerate the expansion of service and geographical coverage for farmers and customers. The company will also invest in operational improvements, including the implementation of automation solutions in the company’s new processing and packing center. The company will roll out three new hubs to deepen its nationwide coverage and provide a smoother end-to-end supply chain process. As part of its inclusive efforts to reach more farmers and improve agricultural productivity, TaniHub Group will launch a new automated Packing and Processing Center (PPC) in Malang, East Java.
Going forward, TaniHub Group will continue to strengthen its supply-side through its partnership with farmers by improving productivity, consistency, and regeneration.
By working with TaniHub Group, farmers are able to cultivate higher quality harvests, while reducing waste and inefficiency throughout the supply chain—improving farmers’ income and promoting the sustainability and resilience of agricultural processes.
The Group claims that farmers using TaniHub’s platform have recorded at least a 20% increase in their income, while farmers who also participate in TaniFund have generated an additional 50% income. These outcomes closely align with key Sustainable Development Goals under the United Nations 2030 Agenda for Sustainable Development.