Eratani, a startup based in Indonesia, announced an additional $2 million seed extension funding round, bringing the total seed funding to $5.8 million.
Investors in this round include SBI Ven Capital, through its joint fund with Kyobo Securities and NTUitive, Genting Ventures, Orvel Ventures & Ascend Angels, according to a statement from Eratani. This extension follows the firm's $3.8 million raise at the end of 2022, which came from TNB Aura, AgFunder, B.I.G Ventures, and Trihill Capital.
This overall seed round signals renewed optimism for Indonesia's agritech industry and strengthens investor confidence in Eratani's ability to unlock the sector's potential while creating a substantial social impact.
"Eratani was founded on the belief that technology can transform the agriculture industry and create significant social impact," said Andrew Soeherman, Chief Executive Officer of Eratani. He continued, "This investment not only validates our business model but also echoes our conviction in the potential of Indonesia’s agritech. We are committed to continuing our work in empowering farmers, increasing efficiencies, and fostering business sustainability within the agricultural sector."
Established in 2021, Eratani is dedicated to transforming Indonesia’s agricultural sector by integrating technology into farming operations. This approach aims to improve efficiency, promote sustainability, and foster growth in the industry. The firm has made considerable progress, particularly in rice cultivation operations.
Eratani's comprehensive solution, which includes farmer funding, supply chain management, crop distribution, and agricultural assistance, currently supports a network of 20,000 rice farmers across five provinces - West Java, Central Java, East Java, Banten, and South Sulawesi.
The agricultural sector in Indonesia, which contributes about 13 percent to its GDP and employs nearly 29 percent of its workforce, is beleaguered with substantial inefficiencies. Poor logistics and an excess of middlemen lead to high costs and diminished profit margins for farmers, particularly in rice farming, which involves about 17 million households. Eratani's innovative solutions aim to streamline this sector, ensuring farmers directly benefit from their efforts.
The recent investments indicate a strong investor confidence in the sector's potential and Eratani's pivotal role in unlocking this potential. Ryosuke Hayashi, Chief Executive Officer of SBI Ven Capital, voiced his optimism, saying, “We firmly believe in the immense potential of Indonesia’s agritech sector, and Eratani is perfectly positioned to capitalize on this. Their holistic approach and innovative solutions are not only streamlining agricultural processes but also creating social impact for farmers. We remain confident in Eratani’s ability to drive growth and transformation in the agricultural sector.”
The investment symbolizes a promising outlook for the Indonesian agritech industry and cements Eratani's position as a crucial player in the sector.