Agritech startup TaniHub announces to finalize series B funding that is claimed to have the largest nominal value in all of Southeast Asia for startups in its vertical. This funding will be used to strengthen the company’s plans to expand outside Java by building business infrastructure.
Less than a year ago, TaniHub announced a Series A+ funding in April 2020 worth $17 million led by Openspace Ventures and Intudo Ventures.
In the virtual conference, the President of TaniHub Group Pamitra Wineka was unwilling to mention further regarding the fresh fund. He only said that this funding was in the finalizing stage and it was estimated to be announced in a month. The investors are claimed to be so enthusiastic that it is oversubscribed from the targeted funds.
“We want this fund to contribute back to farmers in Indonesia. We want to expand to where we can reach more farmers, hopefully, we can expand to Papua,” he said, Thursday (21/1).
The company plans to build a regional distribution facility (DC), a processing packing center (PPC), a poultry processing center (PPC), a national warehouse (national fulfillment center / NFC), and rice mills in various points. Several locations are including North Sumatra, Riau, Palembang, Lampung, Banjarmasin, Banjarmasin, Manado, and Makassar.
Currently, the PPC location with full-time operational is in Malang, which supports the supply chain of various regional distribution facilities across five cities, Bogor, Bandung, Kartasura, Surabaya, and Denpasar.
TaniHub Group Director of Supply Chain Sariyo said, Malang’s PPC has operated at almost maximum capacity. He appreciates the response the good response in the field because this PPC serves to streamline the distribution process and reduce the risk of damage.
“We build PPC based on the location whether the area has a lot of sources [of agricultural products]. Then, this will be very helpful because PPC must be close to the source area [of agricultural products],” he said.
In addition to the expansion, this year the company will digitize the entire supply chain process by building its own data-driven automation system, without manual work. Next, create a B2B consumer-only platform to accommodate specific processes in order to provide a much better transparency experience.
Last year’s business accomplishment
On the same occasion, the company also announced its glorious achievements over the past year. TaniHub Group Co-Founder & CEO Ivan Arie Sustiawan claims, the company is the first agritech company to successfully score GMV above IDR1 trillion with gross revenue growth reaching 639% YoY.
There are more than 46 thousand farmers who gained a positive impact from TaniHub, one of which is an increase in farmer income by 20%. Further elaborated, the largest revenue from TaniHub Group came from the B2B business with a contribution of 80%, the rest came from the retail business.
TaniHub e-commerce recorded a new user growth of more than 250 thousand people from March to December 2020. The most purchased products by consumers are chicken, dragon fruit, leaf vegetables, rice, eggs, avocado, spices, and melons. The total SKU owned by TaniHub is now more than 1,700, almost doubling the previous year’s SKU of 800.
TaniFund P2P lending also comes with achievements. Last year it succeeded in channeling IDR 89.2 billion funding through 243 projects in the food and agriculture sectors. There are 2500 affected farmers who joined the TaniFund ecosystem as their production has increased by 20%.
In addition, TaniFund’s spirit to increase financial inclusion is visible through the increased income of assisted farmers by an average of 25% with bank account ownership reaching 100%. TaniFund targets to increase its distribution to IDR 1 trillion to 10 thousand farmers this year.
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Original article is in Indonesian, translated by Kristin Siagian
