Germany’s DEG bets on Indonesian agritech firm PasarMikro

(From left) PasarMikro co-founders Dien Wong (CEO), Demetrius Edo Djayaputra (COO), and Hugo Verwayen (CFO) / Photo credit: PasarMikro

Nine months after Indonesia-based PasarMikro raised US$2.5 million from regional VC firms, the agritech company has got the backing of two global impact investors: DEG and Ceniarth.

Founded in 2020, PasarMikro provides farmers and middlemen – also referred to as traders – a platform to carry out trusted transactions, make faster payments, and gain access to trade credit. Its app offers an embedded digital ledger and traceability functions.

In an interview with Tech in Asia, co-founder and CFO Hugo Verwayen said that the number of registered users on the agritech platform has reached 2,600 – a 160% jump since its last fundraise in November 2022.

Given that the majority of agricultural products in Indonesia pass through intermediaries, the company employs traders as “anchors” to facilitate the inclusion of farmers and buyers within the supply chain, Verwayen said.

PasarMikro looks to use the new capital to reach more smallholder farmers, fishermen, and traders in Indonesia.

Funding details

• Funding amount: Undisclosed
• Investors: DEG, Ceniarth
• Stage: Undisclosed

The participation of DEG in the fundraise is accompanied by a five-year scaling agreement, which means that the German firm offers both financial support and strategic guidance to foster PasarMikro’s growth.

“DEG’s investment in PasarMikro stems from our strong belief in agri-focused fintech solutions improving digital payment and access to finance solutions to underserved smallholders and agritraders,” said Petra Kotte, senior director of banking and German business at DEG.

See also: Indonesia’s aquaculture industry rises to the helm amid farmer decline

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