Editor’s note: the story has been updated to rectify earlier error

Indonesia-based integrated farming productivity platform Elevarm has formally
entered into strategic partnerships with Europe’s Rabobank, Japan’s Nikkei-listed IT giant Scala, and Amartha, Indonesian tech-driven microfinance company.

The partners have jointly pledged more than US$1 million towards developing Elevarm’s pro-farmer financing product.

According to the statement, the project will enable smallholder farmers to acquire agricultural input on a secure credit basis, streamline cultivation practices to enhance productivity, and increase their overall financial literacy.

It is noted that more than 200 farmers have already benefited from the financing program, with approximately $150,000 disbursed over a period of six months.

The global partnerships are expected to bring this number to approximately 1,000 farmers and $1.5 million by the end of 2024.

Following this initiative, Elevarm is currently preparing for its pre-Series A funding round and is slated to release more agri-input products this year, with a focus on bio-stimulants and bio-pesticides.

It is also noted that with 96 percent of Indonesia’s smallholder farmers having completed only basic education, many still grapple with difficulty accessing safe and reliable financing, as well as a lack of knowledge regarding agricultural best practices.

Elevarm’s financing product directly addresses this gap through tech-driven cultivation, which includes remote monitoring, as well as a reliable credit ecosystem designed to be scalable and flexible for smallholder farmer needs.

Compared to traditional financiers who largely offer funding through cash, Elevarm provides quality agri-inputs that are ready for cultivation.

The firm will also drive efforts to increase land productivity and uplift farmers financially through applied technology, namely through scientific soil testing and remote farm monitoring services.

The effective utilization of data will maximize returns while reducing financial and occupational risks.

Furthermore, Elevarm will guarantee offtaking of every harvest for farmers under their financing program, including off-grade yields.

This ensures smallholder farmers will consistently benefit from a stable and secure stream of income every season.

For risk protection, their harvests will also be insured by Elevarm’s insurance provider partners.

“Financial literacy is a crucial part of empowering smallholder farmers because it enables them to truly take ownership of their yields and grow their livelihoods,

“Together with our new partners, Elevarm is connecting global expertise in this field to the grassroots of local farming, using our productive financing model to not only enhance their productivity in the long run but also to help them improve what they do best: feeding Indonesia and the world,” said Bayu Syerli Rahmat, Co-founder and Chief Executive Officer of Elevarm.

According to Elevarm’s 2023 Impact Report, a further six out of ten farmers have never had access to farming advisory in any form.

To bridge this gap, the financing product will also enroll farmers in a free advisory program on good agricultural practices — covering the complete farming process from pre-cultivation to post-harvest.

“Amartha’s partnership with Elevarm is part of our commitment to fostering inclusive growth for the grassroots economy, particularly in agriculture,

“As both companies are tech-driven, by combining our AI-based risk profiling technology with Elevarm’s business model, that leverages robust scientific data and advanced operational technology to mitigate these risks for farmers, we are confident this collaboration can elevate farmer livelihoods sustainably,” said Aria Widyanto, Chief Risk and Sustainability Officer of Amartha.

Ryo Ishihara, Director of Global Business at Scala, added that Scala is pioneering a new project finance scheme that creates a win-win solution for farmers, farm management companies, and investors.

“With our extensive experience in this field and our deep understanding of the agricultural landscape in Indonesia, we have carefully selected Elevarm as a strategic partner,

“Through multiple discussions, we have recognized that Elevarm shares our approach and vision, making them one of the best collaborators to achieve our mutual goals,” he said.

Anna Ignatiadi, Innovation Programme Manager at Rabobank, shared that the world is shifting towards a more sustainable way of life.

“Agriculture plays a pivotal role in creating food systems that align with this,

“Elevarm’s team is crafting a blueprint that has the power to turn individual farmers into a national force for good, where farmer livelihoods are also positively contributing to achieving global food security,” she added.

Elevarm is an upstream agricultural tech company offering a platform of interconnected horticulture solutions and services.

The team focuses on supporting the underdogs of local farming: smallholder farmers.

The firm was co-founded by Bayu Syerli Rachmat, Febi Agil Ifdillah, and Lintang Kusuma Pratiwi in 2022.

Its investors include Insignia Ventures Partners, 500 Global, and Gibran Huzaifah, eFishery’s Chief Executive Officer and Founder.

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