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Eratani closes US$3.8M in seed funding to grow platform-based ecosystem for farmers

Eratani, an Indonesia-based agritech startup that provides end-to-end farm management solutions for local farmers, announces the close of their oversubscribed US$3.8M seed funding round led by Singapore-based VC firm TNB Aura and with commitments from AgFunder, Trihill Capital, and B.I.G. Ventures.

In a press statement, Eratani said that with the new funding, it aims to further scale its operations as they continue to digitise agricultural processes, perfect its farming management programs to best suit farmers’ needs, strengthen the team’s core operations, and expand to new areas in Indonesia.

Eratani will also be maximising its ongoing collaborations with the government. Through their involvement with the Ministry of Communications and Informatics’ Startup Studio Indonesia and through their partnership with the Agricultural Ministry of Indonesia and the Indonesian State Logistics Agency (BULOG), the team is set to receive further support in developing Indonesia’s agricultural ecosystem, strengthening their mission to enable food independence in Indonesia.

Through this funding, it projects to empower more than 50,000 fostered farmers by the end of 2024.

“It has been amazing to see the impact Eratani is already making in the lives of our very own farmers. With the traction, funding, and support we’ve received, the Eratani team is eager to continue our journey in building the ecosystem our country’s farmers deserve,” stated Eratani CEO Andrew Soeherman.

Also Read: The opportunities and challenges Singapore’s agritech sector faces

The startup said that the agricultural sector in Indonesia remains highly fragmented, with farmers still managing their own farmland while working with limited access to finances, quality supplies, and the market. Locally, according to the Indonesian Central Bureau of Statistics, around 75 per cent of Indonesia’s farmers continue to practice traditional cultivation methods.

Eratani was founded by Soeherman, Kevin Laksono, and Angles Gani.

It accompanies farmers from the beginning to the end of their farming process. Using field data statistics collected by the Eratani team, they are able to help increase farmers’ productivity. This data-driven farming management technology includes scientific agri-inputs instruction, agricultural education with selected agronomists, and the distribution of their agri-output for commerce.

Vicknesh R Pillay, Founding Partner of TNB Aura, said that “due to the highly fragmented nature of the agri value chain in the region, TNB Aura believes Eratani’s farmer-centric approach led by a mission-driven team is key to accelerate the transformation of sustainable food security in Indonesia.”

Since its 2021 launch, Eratani said that it has managed to onboard more than 10,000 fostered farmers across the island of Java, managing a total of 8,000 hectares of land and supporting the production of more than 52,000 tons of rice within a year of operating.

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Image Credit: pompjaideaw9

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