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Indonesian agritech AgriAku raises $6 million in pre-Series A funding – TechCrunch


AgriAku, a B2B marketplace for farmers based in Jakarta, today announced that it has raised $6 million pre-Series A. The round was led by Go-Ventures, with participation from MDI Arise, MDI Centauri, Mercy Corps Social Venture Fund and angel investors. The funding will be used for hiring and increasing AgriAku’s market penetration.

The market allows retailers to buy supplies, including seeds, fertilizers and agrochemicals, from wholesalers and manufacturers. Then, retailers sell these items to farmers. AgriAku’s goal is to give retailers and farmers greater product selection and access to transparent pricing. It also provides vendors with business software, such as accounting and inventory management tools, to help them forecast farmers’ needs.

AgriAku’s marketplace was launched in May 2021 and the company claims to have seen an average monthly growth of 200% in gross merchandise value over the past four months. The number of active users on AgriAku is now around 10,000 registered agricultural stores.

The company was launched last year by Irvan Kolonas, also founder of social enterprise agritech startup Vasham and Danny Handoko, who was previously CEO of Airy, an Indonesian hospitality startup. The team also includes Rezky Haryanto Agustia, former assistant vice president for supply chain and operations at e-commerce giant Bukalapak.

Kolonas told TechCrunch that AgriAku is “the culmination of a lifelong mission for me, as I first took on the mission 10 years ago with starting my first business Vasham, a social enterprise, doing a complete closed-loop, full-stack model. help small maize producers.

After spending years trying different models, including direct-to-farmers and retail outlets, Kolonas said he realized that selling directly to farmers was unsustainable. “Instead, we now firmly believe that the most important stakeholder is Toko Tanis. The Toko Tanis are our mitras or agents who distribute not only inputs but possibly other services to farmers. We want to build on the decades of relationships they have built as community leaders with farmers in their surrounding areas. »

AgriAku is the latest among several agritech startups in Indonesia that recently announced funding rounds. Other B2B marketplaces include TaniHub Group, which focuses on connecting farmers with customers to sell their products. Kolonas said AgriAku also wants to enable farmers to sell their products, connecting them to buyers or factories such as rice mills or corn dryers.

In a prepared statement, Go-Ventures partner Aditya Kamath said, “The Indonesian agricultural industry contributes significantly to the economy, at around 13.5% of GDP. However, the upstream agricultural market is highly fragmented with a disorganized value chain for agricultural inputs such as seeds, fertilizers and agrochemicals. He added, “AgriAku’s B2B input market platform is uniquely positioned to improve price transparency and market access for all stakeholders in the agricultural input sector.

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