Indonesian agritech firm TaniHub secures $17m in series A+ money

Indonesia’s TaniHub Group, a startup that connects farmers to customers more easily, said it has raised US$17 million in a series A+ round co-led by Openspace Ventures and Intudo Ventures.

UOB Venture Management, Vertex Ventures, BRI Ventures, Tenaya Capital, and Golden Gate Ventures also participated in the round, according to a statement. The latest capital injection, which brings TaniHub’s total funding to US$29 million, comes on top of the US$10 million it raised less than a year ago.

Photo credit: Julian Hanslmaier

Established in 2016, the agritech startup operates a platform that handles order management, logistics support, and financing options for farmers. It currently serves about 30,000 farmers. The platform connects these farmers to more than 115,000 retail consumers and over 5,000 business customers ranging from restaurants and hotels to food processing players, the company said.

TaniHub also provides cultivation and trade loans for farmers through its peer-to-peer lending platform, TaniFund. Launched in 2017, TaniFund has disbursed over US$6 million in loans to date, the company said. It has also been in an exclusive partnership with Indonesian charity fund Dompet Dhuafa to extend its service to livestock farmers in Java.

With the new funding, the company now looks to accelerate the production of its new services and expand geographically. TaniHub said it will be rolling out three new hubs to deepen its coverage in Indonesia and open a new automated packing and processing center in Malang, East Java. The company also plans to invest in operational improvements, including the implementation of automation solutions in its packing center.

Ivan Arie Sustiawan, the co-founder and CEO of TaniHub, said that the company remains focused on strengthening its partnerships, which include small- and medium-sized businesses. “We expect more robust growth for this year and hope we can reach all cities throughout the country by 2022,” he said.

Over the past year, TaniHub said it has seen a threefold growth year on year.

The startup currently runs five regional offices and distribution hubs in Bogor and Bandung in West Java, Yogyakarta, Surabaya in East Java, and Denpasar in Bali.