Exclusive: Indonesia’s TaniHub slashes more jobs

Indonesian agritech firm TaniHub has implemented another round of layoffs earlier this week for efficiency reasons, Tech in Asia has learned.

TaniHub office / Photo credit: TaniHub

While the exact number of affected employees could not be ascertained, one of the sources who spoke with Tech in Asia on the condition of anonymity says that a significant number of staff across almost all departments have been told they’re being let go by the company.

This is the second publicly known wave of layoffs carried out by TaniHub this year. On business networking platform Linkedin, 752 users currently list themselves as TaniHub employees.

Tech in Asia has reached out to TaniHub for comment, but the company didn’t respond to our request for confirmation on the matter.

Founded in 2015, Jakarta-based TaniHub operates platforms that handle ecommerce (TaniHub Food Solutions), logistics support (TaniSupply), and financing options (TaniFund) for farmers. Its business has attracted the backing of notable VC firms including Openspace Ventures, Alpha JWC Ventures and Golden Gate Ventures.

TaniHub’s last capital injection was in 2021, when it raised US$ 65.5 million in round led by Telkom Group venture arm MDI Ventures. The agritech firm had planned to use the funds to add new facilities and boost exports.

But just months after the fundraise, TaniHub confirmed that it had shut down two of its warehouses and laid off some of its employees. The moves happened at a time when the company had decided to shift its commerce business from a B2C to a B2B model, which involves supplying food products to SMEs and restaurants.

Over the course of the year, TaniHub has also seen all of its C-suite leave the company, placing the burden of leadership on its newly appointed CEO, reportedly former OLX Auto boss Johnny Widodo. Pamitra Wineka, TaniHub’s co-founder and former CEO, is now chairman of the company.

See also: TaniHub’s future precarious amid C-suite exits, fresh allegations

Despite its problems, TaniHub’s businesses seem to be up and running for the most part. Its P2P lending business, however, is experiencing significant troubles as it TKB90 – the measure of successful loans in Indonesia – has continued to fall drastically, signaling a huge number of loan defaults. As of November 11, the figure stands at 36.07%, well below the national average of 97.68%.

In September, TaniHub confirmed to Tech in Asia that it was in the process of raise some fresh financing, including debt.