Eden Farm, Indonesia’s agritech company, has raised $19 million in its Series A round, co-led by AppWorks and AC Ventures, per an announcement.
The round also saw the participation of Trihill Capital, OCBC Ventures, Investible, Corin Capital, and existing investor Global Founders Capital.
Eden Farm focuses on the B2B market and sources products directly from farmers. Since its inception in 2017, it has been simplifying the supply chain process in the food distribution network as it looks to improve margins by reducing prices and cutting out middlemen.
It raised its seed round amounting to $1.7 million in 2019. The company claims that farmers’ income has increased by over 200% while reducing food costs for customers by 30%.
“By the end of 2022, we plan to expand to 25 cities and 8 regencies, supplying more than 100,000 customers with 100% fulfillment rate of more than 1,000 SKUs, to finance and generate demand,” said David Setyadi Gunawan, founder & CEO at Eden Farm in the statement.
Currently, Eden Farm serves more than 53,000 customers by working with over 2,000 farmers across Java.
“The Eden Farm team …has proven that they are coachable and have laid out a powerful vision for the future of agriculture in Indonesia,” said Jamie Lin, chairman & founding partner at AppWorks.
Meanwhile, Adrian Li, founder & managing partner of AC Ventures, added: “As early investors in Eden Farm, we have seen the company grow …. as they scaled demand channels and built stronger relationships with farmers on the ground. We continue to support Eden Farm as they further lead this industry into digitization.”
According to the Central Bureau of Statistics, Indonesia is home to 33.4 million farmers, with the agriculture sector contributing 14% of Indonesia’s GDP or $140 billion in market size, growing at 12.93% QoQ.
With the agriculture sector being heavily fragmented with inefficient supply chains, farmers’ income is limited with significant margin leakage throughout the value chain. Additionally, F&B is a $92 billion market, with mom-and-pop stores contributing to $63 billion in market size. The food sector is expected to grow at a CAGR of 8.7%.