Gokomodo, an Indonesian agriculture supply chain platform, announced Tuesday a $26 million series A funding round led by East Ventures.
Other investors participating in the oversubscribed round are SMDV, Eight Capital, K3 Ventures, Triputra, Waresix, Indogen Capital, Sahabat Group, and Sampoerna Financial, Gokomodo said in a statement.
Going forward, Gokomodo said its growth priorities include expanding the product selection on its platform, growing its customer base, enhancing its digital platform and aggressively building out physical distribution points in remote areas to create a strong online-offline presence able to effectively drive penetration and reach underserved areas in Indonesia.
These physical stores will enable Gokomodo to better serve customers off-Java, where the majority of agribusiness companies and smallholder farmers are located.
“We are glad to receive the strong support from East Ventures and other investors. Gokomodo’s dual approach, combining a strong digital platform combined with a strategic physical footprint, ensures that we can drive penetration even in areas where the digital infrastructure is still lacking, in line with our goal of advancing agribusiness companies and smallholder farmers all over Indonesia and enabling equal access for all through technology,
“By having a closer presence with farmers, we hope to improve their welfare and help them to build more sustainable farming practices,” said Samuel Tirtasaputra, Co-Founder and Chief Executive Officer of Gokomodo.
According to the statement, agribusiness is the second largest contributor by sector to Indonesia’s gross domestic product (GDP), covering more than 42 million hectares with a total market of around $30 billion of procurement inputs.
But despite its size, the supply chain is highly fragmented and inefficient, creating difficulties for corporates and smallholder farmers alike in reliably accessing high quality agricultural inputs such as fertilizer and tools.
Gokomodo said its digital platform aims to increase sourcing transparency, accessibility and efficiency for both agribusiness corporates and smallholder farmers.
Its enterprise platform offers efficiencies in the procurement process, finding verified sellers, transparency, and digital control. Corporates also have the option of buying competitive products through Gokomodo’s e-commerce storefront.
Gokomodo also collaborates with Waresix for seamless logistics to ensure timely delivery. Whereas smallholder farmers benefit from lower product prices with reliable availability, as Gokomodo is able to pass on savings from bigger buying power and combined logistics.
“Gokomodo has proven that it can be a reliable partner for both large companies and smallholders, as a trusted solution for good quality agricultural supplies that arrive within a clear timeframe,
“Our aim is to leverage technology to bridge the gap between large corporates and smallholder farmers, supporting the latter by leveraging our buying power and infrastructure on their behalf,” said William Pramana, Co-Founder and Chief Technology Officer of Gokomodo
Gokomodo was founded in 2019 by Tirtasaptura, a former agribusiness executive and Pramana, a serial tech entrepreneur. The firm has built the largest enterprise network and land coverage in its sector.
To date, it has more than 3,000 companies in its ecosystem including major agribusinesses corporates in Indonesia such as Sinar Mas, First Resources, and Sampoerna Agro.
“We welcome Gokomodo into East Ventures’ family. Gokomodo stands out as an innovative solution to pressing supply chain problems in the agribusiness sector,
“With the huge potential of agribusiness in Indonesia, we believe that Gokomodo has great potential to significantly boost productivity and output towards supporting the growth of Indonesia’s economy. We are looking forward to further growth from Gokomodo,” said Willson Cuaca, Co-Founder and Managing Partner at East Ventures.
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