Raising Series B Funding of US $ 65.5 Million (Rp942 Billion) Led by MDI Ventures, TaniHub Group Targets Strengthen Agriculture

Jakarta, 21 May 2021 - TaniHub Group, the largest growing agritech startup in Indonesia, has completed its Series B funding to support business expansion.  The funding with a value of US $ 65.5 million (Rp942 billion) was led by MDI Ventures, with the participation of several new and previously participating investors, namely Telkomsel Mitra Inovasi (TMI), Add Ventures, BRI Ventures, Flourish Ventures, Intudo Ventures,  Openspace Ventures, Tenaya Capital, UOB Venture Management, and Vertex Ventures.

In order to create a wider social impact, TaniHub Group will use this funding for geographic expansion through the construction of various mini hub facilities, with the support of local governments throughout Indonesia.

Along with these steps, the company will also develop its products and services by strengthening technology in various business lines.  All of these initiatives are the efforts of the TaniHub Group ecosystem in absorbing the production of Indonesian agricultural and farmer MSMEs, which are not only intended for domestic consumption, but also for the international market.

With a business growth of 639% in 2020, TaniHub Group has proven its ability to survive and grow despite the Covid-19 pandemic.  The speed in adjusting the business strategy is the key to this achievement.

Armed with experience in dealing with pandemics, TaniHub Group believes that this funding can boost business growth by three times.

2020 will be the first moment for TaniHub Group to leave Java, starting with Bali.  This year's success and strengthened by experience in managing six Warehouses and Processing and Packing Centers (PPC) further solidifies TaniHub Group's steps in reaching all regions of Indonesia, so that positive impacts can also be felt by communities and farmers from the west to the east of the country  .

The CEO of TaniHub Group, Pamitra Wineka, said that expanding the reach of services and strengthening the supply chain were the main focus in this funding period.  "The agricultural sector in Indonesia is not connected to each other because there are many small players with limited service coverage areas, so that inefficiencies in the value chain are inevitable.

Therefore, we plan to strengthen our role in every region of Indonesia to be closer to farmers and communities.  So that in the end what we do can reduce the price disparity between farmers and consumers, "said Pamitra Wineka.

"With the new funding entrusted to MDI from Telkom and the Ministry of BUMN, MDI will continue to focus on investing in technology startups that have a big role in various sectors that influence people's lives and can make a big difference in Indonesia.

MDI sees the TaniHub Group as having a major role in agriculture and has proven that its existence can have a positive impact on improving the quality of life for farmers in Indonesia.  We hope that our investment will help the TaniHub Group to continue the program and expand its coverage to more farming communities in Indonesia. "  said Sandhy Widyasthana, MDI Ventures Portfolio Director in line with Pamitra.

Smita Aggarwal, Global Investments Advisor Flourish Ventures said, “The TaniHub Group business model is a unique combination of integrated supply network, demand aggregation and finance in a balanced proportion for stakeholders, including small farmers, street vendors, small business owners, and  household consumers.

TaniHub Group offers interesting solutions to the problems of this compartmentalized agricultural sector.  Because this business model allows linkages with markets and access to finance for farmers.  That's why Flourish Ventures is proud to expand its commitment through participating in the TaniHub Group Series B funding round. "

Pamitra Wineka also said that this funding has a distinct impression for the TaniHub Group.  First, because of the support from the country through MDI Ventures, a corporate venture capital owned by the Telkom Group (PT. Telekomunikasi Indonesia (Persero) Tbk) which is known to be a leader in the field of telecommunication technology and infrastructure.  Second, the joining of Flourish Ventures, a leading global investor because of its concern for social impacts, one of the pillars of the TaniHub Group which has become the DNA for all TaniSquad (the name for TaniHub Group employees).

Extending social impact

TaniHub Group aims to improve the welfare of farmers and have a positive impact on society and the environment in various ways.  First, the TaniHub Group allows the creation of fair pricing because the supply chain between farmers and consumers has been shortened through the absorption of the harvest directly to farmers.  Short supply chains and better management of crop yields also increase the resilience of commodities, resulting in food waste and reduced carbon footprints.

Second, data-driven credit scoring capability in the agricultural sector helps TaniHub Group to provide better access to finance for farmers.  Third, the TaniHub Group conducts a series of workshops and financial literacy trainings to foster farmers when they want to spend their increased income, so that they and their extended families can experience long-term welfare improvements.

Not only for farmers, TaniHub Group is also committed to improving the livelihoods and welfare of all stakeholders in its ecosystem, including clients, consumers, and no exception, the company's own employees.

Since its establishment in 2016, TaniHub Group has been committed to contributing to the achievement of the Sustainable Development Goals (SDGs) targeted by the United Nations (UN), especially the points No Poverty, Zero hunger, Decent work and Economic growth, Climate Action, Responsible Consumption and production.  , as well as Good Health and wellbeing.

Through this commitment, TaniHub Group believes that all current and future efforts will have a positive impact on the welfare of the community, especially those who work as farmers and small business owners related to agriculture.  TaniHub Group hopes that the involvement of global investors who focus on impact investing will help to accelerate the steps in achieving its goals.