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TaniHub bags $70m Series B, aims to expand supply chain
After expanding to Bali last year, the agritech start-up is looking to expand its supply chain services to other Indonesian islands like Kalimantan and Sumatra.
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Agriculture Minister Syahrul Yasin Limpo (second right) makes an official visit on April 21, 2021 to TaniHub's National Fulfillment Center (NFC) in Cikarang, Bekasi, West Java, accompanied by TaniHub Group CEO Pamitra Wineka (right) and chief operating officer Sariyo (third left). (Courtesy of Tanihub)
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aniHub Group, one of Indonesia's top agriculture technology start-ups, has raised US$69.5 million (Rp 942 billion) in a Series B funding round to expand its supply chain outside the islands of Java and Bali.
The start-up said in a statement on Friday it would use the new funds to build more “mini hubs” of warehouses or packaging facilities across the archipelago with an aim to boost transactions and exports of fresh products by volume.
Supply chain services is one of three core businesses TaniHub provides farmers. The other two services are a fresh produce online marketplace and peer-to-peer lending.
“We are planning to strengthen our role in every region of Indonesia, bringing farmers and consumers closer together,” TaniHub Group CEO Pamitra Wineka said in the statement.
The new funding round was led by MDI Ventures, a subsidiary of state-owned telecommunications giant PT Telekomunikasi Indonesia (Telkom), and involved Add Ventures, BRI Ventures, Flourish Ventures, Intudo Ventures, Openspace Ventures, Tenaya Capital, UOB Venture Management and Vertex Ventures.
TaniHub said its business had grown a whopping 639 percent in 2020, when it also expanded its business beyond Java by opening a warehouse in Bali. The agritech start-up added it planned to expand to the islands of Kalimantan and Sumatra.
According to business data provider Crunchbase, the latest Series B round brings TaniHub’s total funding to $94.5 million, following an extended Series A funding round in April that raised $17 million.
MDI Ventures portfolio director Sandhy Widyasthana said the new fund, which had been “entrusted to MDI from Telkom and the State-Owned Enterprises (SOEs) Ministry”, was expected to help TaniHub expand its reach to more farming communities in the country.
The agriculture sector leads in workforce absorption at 30 percent, yet it is also very low-tech, and less than one-fifth of all farmers have tertiary and higher education.
Since its establishment in mid-2016, TaniHub has partnered with over 35,000 smallholder farmers and operates 12 distribution hubs to date, distributing over 900 different agricultural products to more than 200,000 customers.
