Mapping Indonesia’s key agritech players (update)

Indonesia’s agritech startups are booming, with funding growing significantly this year. Tech in Asia’s data shows that startups and investors have flocked to the agritech space, and there are signs that this trend will continue.

The number of funding deals in the country’s agritech startups has nearly doubled in 2022. In terms of funding amount, it has jumped over 2.5x to US$375.9 million during the year from US$147.8 million in 2021.

However, the increase in Indonesia’s agritech funding this year is closer to 4.5x, as over 40% of the funding amount in 2021 came from one deal: TaniHub’s US$65.5 million series B round.

The biggest deals in 2022 include SayurBox’s US$120 million fundraise and eFishery’s US$90 million series C haul, which are instrumental to the growth in funding. AgriAku and Gokomodo also got huge investments, banking US$46 million and US$26 million, respectively.

Agricultural production is one of the majors contributors to Indonesia’s gross domestic product, accounting for around 13.7% of it in 2020. The agriculture industry’s sizable workforce is another “fertilizer” for the growth of the country’s agritech startups.

Government data shows that as of February 2022, 40.6 million people – or 15% of Indonesia’s total population – are working in agriculture, forestry, and fishery sectors. Interestingly, only less than 15% of these workers had access to internet connection in 2019.

The main reason why agriculture is a significant industry in Indonesia is its geography. The country has vast tracts of high-yielding land and tropical rainforests – the third-largest globally after the Amazon in South America and the Congo in Africa – and is extensively surrounded by water as it is the world’s biggest archipelagic state.

The compound annual growth rate of Indonesia’s agritech market hit about 40% on the basis of revenue generated during the financial years 2016 to 2021, according to a report from Ken Research.

That said, not every startup in Indonesia’s agritech space is doing great. Case in point: TaniHub, which has implemented two rounds of layoffs this year. The company faces leadership issues after all of its C-level executives left. It also has to deal with allegations of VC funding misuse as well as mounting discontent from lenders.

See also: These are the most active investors in Indonesia’s startups

But these setbacks haven’t dampened investor interest, since there are still success stories such as the profitable eFishery. This year, the agritech sector has secured funding from big names such as East Ventures, Temasek, Sequoia Capital, and SoftBank, among others. East Ventures alone has backed six Indonesian agritech startups so far in 2022.

Devina Halim, a VC principal at East Ventures, said in an earlier interview with Tech in Asia said the firm sees a lot of potential for agribusiness in Indonesia and has a “very robust” interest in the space.