Small farmers in Southeast Asia face persistent challenges: low yields, limited market access, and climate risks. Yet, technology innovations are reshaping this landscape, empowering farmers to grow more, sell smarter, and adapt better to changing environments.
From struggle to smart farming
Hao Diep, CEO of TechCoop, witnesses this transformation daily in Vietnam’s agricultural heartland. Farmers who once depended solely on traditional methods now leverage digital platforms to optimise their entire value chain. What was once a fragmented system of isolated smallholders has evolved into an interconnected network where technology bridges farmers, cooperatives, and agribusinesses.
This change reflects a broader revolution across Southeast Asia. In 2024 alone, 233,250 farmers improved their livelihoods through TechCoop’s platform by gaining increased market access and input financing. Agriculture remains the backbone of rural economies in this region — these numbers represent families lifted out of poverty and communities gaining resilience.
Breaking down barriers with digital innovation
The mobile revolution in Southeast Asian agriculture is fundamentally about solving real problems for real people. TNB Aura’s portfolio provides examples of how investors are supporting businesses that address core challenges in the agricultural sector.
For example, AgriAku, operating across Indonesia, partnered with 8,170 farmers in 2024, transforming how smallholders access agricultural products and manage supply chains. Their impact goes beyond scale — AgriAku has registered two agri-biological products aimed at regenerating soil and reducing synthetic fertiliser use while implementing irrigation systems that improve water efficiency and rice productivity. This shows how targeted innovation can address pressing agricultural issues, rather than deploying technology for its own sake.
Smart solutions, sustainable impact
The adoption of IoT tools and smart sensors across Southeast Asia aligns with TNB Aura’s thesis that emerging economies can take advantage of technology to bypass traditional development stages. In Indonesia, Eratani offers a comprehensive platform enabling farmers to procure inputs, access financing, and sell products efficiently.
These platforms don’t just digitise existing processes; they reimagine them entirely. According to TNB Aura, more than 209,000 small-scale enterprises across its portfolio have been integrated into digital ecosystems, shifting from isolated operations to being part of larger value chains.
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Opening digital marketplaces
Digital marketplaces are disrupting traditional agricultural value chains across Southeast Asia. TNB Aura’s research highlights that Indonesia, the Philippines, and Vietnam face significant development gaps but also hold substantial growth potential. Only 43 per cent of adults in these countries have bank accounts, making digital financial inclusion through agri-platforms especially transformative.
TechCoop is one example. Its MOU with Sorimachi supports cooperatives in Vietnam with access to technology, commerce, and finance — a step toward building infrastructure that TNB Aura sees as critical for long-term agricultural development.
The ripple effects extend beyond individual transactions. When farmers gain access to digital marketplaces, they join ecosystems enabling “better access to new technology, financial services, and market integration opportunities,” particularly in tier 2 and 3 cities that face developmental challenges.
Climate resilience through technology
Climate change poses Southeast Asia’s greatest challenge — and biggest opportunity for tech-driven solutions. TNB Aura estimates a US$~1.49 trillion investment gap in regional decarbonisation efforts, viewing climate adaptation as both a necessity and an opportunity.
AgriAku’s bio-fertiliser products, considered among the safest alternatives to chemical fertilisers, boost productivity while promoting environmental sustainability. This aligns with TNB Aura’s Fund 3 focus, where about 40 per cent of commitments are directed toward decarbonisation and climate resilience.
Focusing on climate-smart agriculture reflects TNB Aura’s understanding that “the climate crisis threatens to set back development efforts, including progress on the SDGs.” By backing companies that help farmers adapt while reducing environmental impact, TNB Aura creates a “flywheel of innovation, growth, and impact.”
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Community-wide transformation
The broader impact of agricultural technology is evident in TNB Aura’s portfolio-wide metrics. The firm reports that 84 per cent of its workforce operates in OECD ODA-eligible countries, with 60 per cent of portfolio employees being women — indicators that reflect how agricultural technology businesses can contribute to inclusive employment.
TechCoop’s CEO Hao Diep notes that despite recent market uncertainties, inbound equity interest remains strong: “The sour investment climate has not affected investor interest, as businesses solve fundamental problems rather than chasing trends.”
Across TNB Aura’s Fund 2 and Fund 3 companies, five million individual beneficiaries represent communities where technology is driving lasting change. These are not just platform users, but participants in restructured economic systems with improved access to goods and services.
Following the flywheel
TNB Aura’s approach to agricultural technology reflects a broader investment philosophy: identifying tomorrow’s tech champions by integrating global precedent research with regional sustainability challenges.
To date, the firm has analysed more than 660 precedent business models, informing 24 investments across three funds, with agricultural technology serving as a core focus. As David Bonifacio, Managing Partner and Lead for Value Creation, explains: “Value creation at TNB Aura focuses on laying foundations, applying management best practices, and developing strategic initiatives to build dynamic organisations and strengthen our right to win.”
This systematic approach creates a flywheel effect: data-led insights inform backing the best companies, institutionalising growth, and unlocking the next innovation wave. Each successful agricultural tech solution creates resources and knowledge that fuel further impact.
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Looking to 2025 and beyond
TNB Aura’s commitment to agricultural transformation is intensifying. The firm has stated that it aims to direct over 90 per cent of Fund 3 capital to OECD ODA-eligible countries, with particular emphasis on Indonesia, the Philippines, and Vietnam, which it views as high-potential markets for growth and SDG impact.
As Hao Diep reflects on TechCoop’s approach: “We prioritise scalable impact, empowering cooperatives and agri-SMEs with digital solutions to optimise production and facilitate supply chain partnerships, even if short-term profitability requires compromise.”
This long-term perspective underscores TNB Aura’s central belief: sustainable growth and meaningful community impact are two sides of the same coin. In Southeast Asian agriculture, technology isn’t just changing how farmers work; it’s reshaping entire communities and laying the foundation for a more resilient, prosperous future.
The transformation is underway. The real question is how quickly entrepreneurs, investors, and policymakers can scale solutions already proving their worth across the region’s fields.
Disclaimer: The views, opinions, and analyses expressed herein are solely my own and do not necessarily reflect those of TNB Aura, its affiliates, partners, or representatives. Any observations shared are based on my personal perspective and professional experience working at TNB Aura and should not be construed as official statements, positions, or endorsements of the firm.
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