Japan’s Terra Drone acquires Avirtech to offer precision agriculture in SEA

Photo credit: Terra Drone

Terra Drone, a Japan-headquartered drone and urban air mobility (UAM) tech provider, is set to acquire Avirtech, an Indonesia-based startup that offers drone-related services for palm oil plantations.

The Japanese company didn’t disclose financial details but told Tech in Asia that the deal value is in the millions of US dollars. It is also establishing a new entity called Terra Drone Agri, which will focus on precision agriculture in Indonesia and Malaysia.

Founded in 2016, Terra Drone began as an electric scooter startup before pivoting into drones. It offers drone-surveying solutions for clients like Total, Toshiba, and Chevron, while clients in Indonesia include Pertamina and Perusahaan Listrik Negara.

Meanwhile, Avirtech – which also has offices in Singapore, Malaysia, and Thailand – uses AI to optimize pesticide spraying and map out farms for better crop management. Avirtech’s customers include the likes of Asian Agri, Sinar Mas Group, and Wilmar.

A Terra Drone spokesperson told Tech in Asia that Avirtech’s revenue has doubled year on year, with sales from both the spraying and mapping businesses in the “high millions of US dollars.”

As part of the deal, Terra Drone will combine its UAV tech with Avirtech’s expertise in precision farming to help address issues like deforestation and labor shortage. While Indonesia and Malaysia together account for around 80% of global palm oil production, Terra Drone said that the addressable market in both countries remains large.

It also targets 5 billion yen (US$33.8 million) in sales from spraying and mapping by 2025.

After Indonesia and Malaysia, Terra Drone is eyeing Thailand, the third-largest palm oil producer globally.

Currency converted from Japanese yen to US dollar: US$1 = 147.94 yen.

See also: The regulatory hurdles holding back Malaysia’s drone industry