Indonesia’s TaniHub secures $65.5m Series B
TaniHub, a platform that connects farmers with customers and other agriculture industry suppliers, has closed a $65.5 million Series B round led by MDI Ventures.
Openspace Ventures, Intudo Ventures, UOB Venture Management, Vertex Ventures, Tenaya Capital, Add Ventures, BRI Ventures, and Flourish Ventures also participated, as did the VC arm of Indonesian mobile operator Telkomsel. It follows a staged Series A that raised more than $17 million across 2019 and 2020.
“TaniHub Group aspires to narrow the gap between the prices that Indonesia’s 40 million small farmers receive for their produce and the price that consumers pay for the same food,” CEO Pamitra Wineka said in a statement. “[W]e plan to strengthen our presence in every region of the country to ensure close proximity with farmers and communities.”
Smita Aggarwal, global investments advisor for Flourish, describes TaniHub’s business model as a unique combination of sourcing network, demand aggregation, and embedded finance that creates a win-win for stakeholders from farmers and restaurants to street vendors and household consumers. It targets the idea that fragmentation in the local food supply chain creates inefficiencies that raise costs for buyers and reduce profits for sellers.
TaniHub manages an eponymous e-commerce platform along with a logistics platform called TaniSupply and a P2P crowdfunding service called TaniFund. The combined offering aims to reduce dependency on middlemen and traders by facilitating more direct B2B and B2C communication, shorter supply chains, and alternative finance for smallholder farmers.
TaniHub claimed an ecosystem of around 31,000 farmers, 400 small to medium-sized businesses, and 10,000 individual users as of the beginning of 2021. The company saw strong growth in the first half of 2020, with revenue jumping 104% between January and August. Its valuation is said to have increased almost 6x between early 2019 and August 2020.
MDI, an arm of state-controlled Telkom Indonesia, claims to be the largest corporate VC player in Indonesia. Last year, the firm established a $500 million fund that targets logistics, financial technology, and food.
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