Agritech startup Eden Farm bags $1.7m from Global Founders, Y Combinator, others

Eden Farm, an Indonesian startup developing a sustainable food distribution network in the country, has raised US$1.7 million in a seed round led by Global Founders Capital.

Y Combinator, Everhaus, Soma Capital, S7 Venture, and several angel investors also participated in the round.

From left: Eden Farm founder and CEO David Gunawan, co-founder and chief financial officer Ramavito Mountaino, and co-founder and chief operating officer Febrianto Gamal / Photo credit: Eden Farm

Launched in 2017, Eden Farm focuses on simplifying the supply chain through creating a network of business-to-business customers and local farmers. It provides fruits, vegetables, meat, and dry goods to its consumers, while boosting the income for the ones who produce them. It currently operates in six major cities in Indonesia: Jakarta, Tangerang, South Tangerang, Bekasi, Depok, and Bogor.

The company plans to use the fresh capital to “expand our operations and market penetration to eight major cities in Indonesia and add more profitable products in our product lines,” said David Gunawan, founder and CEO of Eden Farm, told Tech in Asia.

In the near term, the startup will aim for profitability and a positive cashflow. Then, it will push for a three-digit-million valuation (in US dollars) in the next two years before working a potential series A fundraise in mid-2021.

“We have achieved a decent positive gross profit today, and with more scale in GMV, we’ll reach profitability sometime early next year,” Gunawan said.

Looking ahead, Eden Farm plans to eventually operate across Indonesia to serve the B2B market with quality goods, the head exec said.

Other recent deals in Indonesia’s agritech space include TaniGroup’s US$10 million series A round led by Singapore’s Openspace Ventures. The startup operates agriculture ecommerce platform TaniHub and peer-to-peer lending provider TaniFund.

Tech in Asia also previously reported that Indonesian unicorn Tokopedia was in talks to invest in Sayurbox, a local farm-to-table distribution platform for fresh produce. And earlier this year, micro-retail startup Warung Pintar announced its acquisition of agritech startup Limakilo, which operates a platform that streamlines the food supply chain.