Indonesian agritech startup TaniHub Group has raised $17 million in a Series A+ round co-led by Openspace Ventures and Intudo Ventures, the company said in a statement.
UOB Venture Management, Vertex Ventures, BRI Ventures, Tenaya Capital and Golden Gate Ventures also participated in the round.
In 2019, the startup had secured $10 million in its Series A round of financing led by Openspace Ventures. It previously raised an undisclosed sum in its pre-Series A funding in 2018 from Alpha JWC Ventures and several angel investors.
The recent investment brings the company’s total equity funding to $29 million since 2016.
Established in mid-2016, TaniHub operates a platform connecting farmers with 5,000 business customers and 115,000 retail customers.
“TaniHub focuses on building infrastructure and supply chain, addressing some of the largest challenges in the agriculture sector. We are committed to strengthening our B2B partnerships, including small and medium businesses. We expect more robust growth for this year, and hope we can reach all cities throughout the country by 2022,” TaniHub CEO and co-founder Ivan Arie Sustiawan said.
The proceeds from the funding will be allocated to accelerate the expansion of service and geographical coverage for farmers and customers. The startup will also invest in operational improvements, including the implementation of automation solutions in the company’s new processing and packing centres.
TaniHub will also roll out three new hubs to expand its nationwide coverage and provide a seamless end-to-end supply chain process. In the near future, it will launch a new automated packing and processing centre (PPC) in Malang, East Java.
Over the past year, TaniHub Group claims its business grew three-fold year-on-year with over 30,000 smallholder farmers joining its ecosystem.
TaniHub currently operates five regional offices and distribution hubs in Bogor (West Java), Bandung (West Java), Yogyakarta, Surabaya (East Java) and Denpasar (Bali).
As part of its effort to empower farmers across the archipelago, the startup has established a P2P lending platform to provide cultivation and trade loans to farmers. Launched in 2017, TaniFund has disbursed over IDR100 billion ($6 million) in loans to date.
Vegetable and grocery online platform SayurBox and East Ventures-backed startup Kedai Sayur are other players in Indonesia operating in a similar space.