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Raising new funding round, TaniHub Group claims 600+ per cent gross revenue growth in 2020

At a virtual press conference, Indonesian agritech startup TaniHub Group announced that the company is currently finalising a “massive” funding round, following a US$17 million funding that it announced in April 2020.

Set to be finalised within the next few months, TaniHub Group President Pamitra Wineka said that the funding round will likely be “the biggest ever raised by an agritech startup in Southeast Asia“.

“We see this funding round as an opportunity for Indonesian farmers and produces to be recognised internationally,” Wineka said.

The company would not share further details on the identities of the investors and the exact amount of the funding. However, the new funding will be used to further develop TaniHub Group’s upcoming projects: Digitalisation of B2B ecosystem in the agriculture sector, automation of supply chain process, farmers acquisition, and social impact measurements of the works that the company has done.

Responding to questions from the media on the possibility of acquisition as part of its growth strategy, Wineka said, “We are exploring different business strategies that may directly impact our growth, but we are not able to confirm any of it just yet.”

Also Read: What new digital solutions mean for Indonesia’s F&B sector

Launched in 2017, TaniHub Group’s business lines included TaniHub (an e-commerce platform for food and agricultural products), TaniFund (a P2P lending platform for farmers), and TaniSupply (a unit that works on improving agricultural supply chain).

In 2020, the company claimed that it experienced a 639 per cent gross revenue growth with more than 1,700 SKUs recorded up until last year. TaniHub Group attributed the growth to the rising popularity of e-commerce platforms as triggered by the COVID-19 pandemic.

The TaniFund platform has also channelled up to IDR89 billion (US$6.3 million) of funding for farmers in 2020, with an accumulation of IDR180 billion of funds channelled ever since its launch in 2017.

In addition to that, TaniHub Group has also opened a processing and packing centre in Malang, East Java, which is set to be followed by other centres across Indonesia. The centre is part of the company’s effort to get closer to the farmers and their potential market as well as to maintain product quality.

Image Credit: Tim Mossholder on Unsplash

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