Indonesia-based agritech firm Eratani has secured US$2 million in a seed extension round from SBI Ven Capital, Genting Ventures, Orvel Ventures, and Ascend Angels.
This deal brings the total seed funding to US$5.8 million.
The new investment comes about half a year after Eratani raised US$3.8 million from TNB Aura, Trihill Capital, BIG Ventures, and AgFunder.
Eratani CEO Andrew Soeherman said: “We are committed to continuing our work in empowering farmers, increasing efficiencies, and fostering business sustainability within the agricultural sector.”
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Established in 2021, Eratani integrates technology into farming operations to improve efficiency, drive sustainability, and foster growth in the country’s agricultural industry. Its solutions comprise farmer funding, supply chain management, crop distribution, and agricultural assistance. The firm claims it supports a network of 20,000 rice farmers across West Java, Central Java, East Java, Banten, and South Sulawesi.
Although it contributes about 13 per cent to the GDP and employs nearly 29 per cent of its workforce, Indonesia’s agricultural sector 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.
“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,
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