Eratani, an Indonesia-based agritech firm, has on Monday announced a further $2 million seed extension funding round, bringing the total seed funding to $5.8 million.
The round sees participation by SBI Ven Capital through its joint fund with Kyobo Securities and NTUitive, Genting Ventures, Orvel Ventures & Ascend Angels, Eratani said in a statement.
End of 2022, Eratani raised $3,8 million from TNB Aura, AgFunder, B.I.G Ventures and Trihill Capital.
Eratani said that this overall seed round signals a renewed sense of optimism for the agritech industry in Indonesia and solidifies investor confidence in Eratani’s ability to unlock the sector’s potential while creating significant social impact.
“Eratani was founded on the belief that technology can transform the agriculture industry and create significant social impact,” said Andrew Soeherman, Chief Executive Officer of Eratani.
“This investment not only validates our business model but also echoes our conviction in the potential of Indonesia’s agritech,
“We are committed to continuing our work in empowering farmers, increasing efficiencies, and fostering business sustainability within the agricultural sector,” he added.
Eratani, founded in 2021, is an agritech startup committed to transforming Indonesia’s agricultural sector.
By integrating technology into farming operations, Eratani aims to improve efficiency, drive sustainability, and foster growth in Indonesia’s agricultural industry.
Eratani has made significant strides in integrating technology within rice cultivation operations.
Its comprehensive solution, involving farmer funding, supply chain management, crop distribution, and agricultural assistance, now supports a network of 20,000 rice farmers across five provinces (West Java, Central Java, East Java, Banten & South Sulawesi).
According to the statement, Indonesia’s agricultural sector, which contributes about 13 percent to its gross domestic product (GDP) and employs nearly 29 percent of its workforce, faces significant inefficiencies.
Poor logistics and a surplus of middlemen result in high costs and reduced profit margins for farmers, particularly in rice farming, which involves about 17 million households.
Eratani’s innovative solutions aim to streamline this sector, making it more efficient and fair, ensuring farmers directly benefit from their work.
It is noted that investors have responded with equally strong confidence, voicing optimism in the sector’s potential and Eratani’s role in unlocking this potential.
“We firmly believe in the immense potential of Indonesia’s agritech sector, and Eratani is perfectly positioned to capitalize on this,” said Ryosuke Hayashi, Chief Executive Officer of SBI Ven Capital.
“Their holistic approach and innovative solutions are not only streamlining agricultural processes but also creating social impact for farmers,
“We remain confident in Eratani’s ability to drive growth and transformation in the agricultural sector,” he added.
According to Eratani, this investment also signifies an optimistic outlook for the Indonesian agritech industry and strengthens Eratani’s position as a key player in the industry.
Indonesia’s Eratani raises $3.8M seed funding round led by Singapore’s TNB Aura