TaniHub, the embattled Indonesian agritech major, is in the market to raise debt financing, according to a source with knowledge of the situation. The company looks to move past a series of recent setbacks that has seen it downsize its operations and face troubles related to its lending business.

However, a new set of challenges appear to stand in its way, Tech in Asia has learned.

TaniHub office / Photo credit: TaniHub

The company, which only 16 months ago secured US$65.5 million in equity funding, is suffering from a lack of leadership following the departure of all of its C-level executives. It is also facing allegations of VC capital misuse as well as mounting discontent from lenders.

TaniFund, its lending arm, appears to present the bulk of the issues. Natalia Rialucky Marsudi, who oversaw TaniFund in addition to her role as TaniHub’s chief strategy and social impact officer, left the company in May 2022 after a little over a year.

In an interview with Tech in Asia, TaniHub co-founder Pamitra Wineka notes that he had started looking into TaniFund shortly before the second quarter of this year. He confirms that the company’s focus is on raising financing, including debt, though he did not specify exact details.

Wineka adds that the company is attempting to find a solution with the lenders of its financing unit, though it is currently not planning to replace the C-level executives who left the firm.

Empty C-suite

TaniHub has reportedly hired former OLX Auto boss Johnny Widodo as its new CEO to take over from Wineka. The latter helmed the company for a mere seven months following the departure of fellow co-founder Ivan Arie Sustiawan.

However, TaniHub currently has no other C-level executives in its ranks.

CFO Weeny Charlotte departed in April, followed by chief strategy officer Marsudi and chief marketing officer Ritchie Goenawan in May and June, respectively. Before that, COO Vincentius Sariyo left the company in December 2021.

These departures have left TaniHub gravely lacking in leadership and places great burden on new boss Widodo, although his appointment is also yet to be officially confirmed. Widodo did not respond to our query on the matter.

Chairman Wineka confirms the absence of a C-suite at TaniHub, but he plays down any potential negative implications it may have on the company.

“We are not hiring any other C-levels, because we feel that our [current] business is fine with non C-level [executives],” he says.

Alleged misuse of VC funds

Lenders mull action