Indonesia's poultry tech startup Pitik raises $14m in Series A round led by Alpha JWC

Pitik CEO Arief Witjaksono (left) and COO Rymax Joehana. Photo courtesy of Pitik.

Indonesia’s poultry tech startup Pitik bags $14 million in a Series A funding round led by Alpha JWC, the company said on Thursday. Existing investors MDI Ventures and Wavemaker Partners also participated in the round.

The startup plans to utilises the funding to build a presence in more areas across Java this year and expand to other regions next year. It will also continuously enhance tech and product capabilities, including expanding its business to downstream services such as processing and distribution to end-users. Moreover, Pitik wants to hire more team members, especially in roles like deep tech engineers, operations professionals and poultry experts.

Founded in 2021, Pitik works with poultry farmers and provides them with farm management technology to improve their productivity. This includes equipping farmers with internet-of-things (IoT) systems and Pitik’s smart farming application to facilitate real-time farm monitoring and instant issue identification. This way, farmers are able to get real-time insights from the farm so they can take necessary actions to tackle issues immediately. Pitik also provides financing services and offtakes the harvest with the best prices and guaranteed terms of payment.

For instance, Pitik offers a buy-now-pay-later service where farmers can buy things like feed and equipment and pay later at the time of harvest. Going forward, the startup plans to partner with third parties to provide working capital and capex financing for its farmer communities.

“We have proven that our technology is effective in helping farmers improve their yield and our ecosystem is capable of providing value-added services for farmers,” said Pitik co-founder and CEO Arief Witjaksono. “This funding round will not only enable us to reach out to more farmers, but also to drive further innovation and unlock additional efficiency gains for farmers,” he added.

In Indonesia, poultry farmers face challenges such as low efficiency, poor management and late payments during harvest time, leading to a high poultry mortality rate. Pitik aims to solve these inefficiencies and streamline the supply chain to create a fair ecosystem for farmers to grow and improve their livelihood.

The company said Pitik’s farmers managed to push down their poultry mortality rate by half and improve the feed conversion ratio by 12%, eventually increasing their income by 20%. The startup has partnered with farmers in 53 districts in west and central Java so far.

“We have unlocked the upstream business opportunities in poultry farming. Expanding downstream means we can help farmers extract higher margins from the value chain. This is aligned with our mission to be farmers’ partner at all points of the farming journey,” said Pitik co-founder and COO Rymax Joehana.

The poultry tech industry is still at a nascent stage in Indonesia, with only a few players emerging over the past three years. Besides Pitik, other startups in this sector are Chickin and BroilerX, which develop innovative farm and IoT systems to increase the productivity and efficiency of chicken farms. 

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