Indonesian agritech startup EdenFarm pivots, lays off 300 employees

(From left) EdenFarm co-founders David Gunawan, Ramavito Mountaino, and Febrianto Gamal / Photo credit: EdenFarm

EdenFarm, an Indonesian agritech startup, has laid off employees after deciding to “remodel the business,” the company confirmed to Tech in Asia.

It is discontinuing its B2B fresh produce distribution operations outside the Greater Jakarta area and will instead focus on manufacturing and selling TuangTuang, a brand of packaged seasonings the company launched just last week.

An EdenFarm spokesperson confirmed that approximately 300 people were laid off. The company’s LinkedIn page lists 546 employees.

The spokesperson further said that affected employees will be compensated according to Indonesian law and will receive additional support, such as health benefits, that will be available until the end of the year.

One employee that was let go told Tech in Asia that during a recent town hall, EdenFarm management told staff that fundraising was progressing slower than expected. The company last raised funds in January with a US$13.5 million bridge round led by Telkomsel’s VC arm.

Founded in 2017, EdenFarm’s initial business model aimed to simplify the produce supply chain between local farmers and B2B customers like restaurants. It has raised US$34.5 million in disclosed funding from backers like Y Combinator, Global Founders Capital, and AC Ventures.

This isn’t the first time EdenFarm has held layoffs. During the Covid-19 pandemic, the company retrenched around 200 people.

See also: Why genAI for farming in India can be fertile ground for Indonesia’s agritech players