Indonesia’s agritech sector has seen better days, but Eratani, a promising startup, is bucking the trend. The Jakarta-based firm has just secured US$6.2 million in Series A funding, a significant vote of confidence in its mission to revolutionize rice farming through technology and sustainable practices. The round was led by Clay Capital, with participation from AgFunder, SBI Ven Capital, TNB Aura, Genting Ventures, and IIX. This influx of capital comes at a time when investor sentiment in the sector is cautious, following a sharp decline in total funding from US$135.6 million in 2023 to US$33.2 million in 2024.
Eratani’s platform is designed to optimize farming operations, boost crop yields, and address Indonesia’s growing rice demands. The company supports over 34,000 smallholder farmers, managing more than 13,000 hectares of farmland. Its integrated model covers everything from financing and planning to market access, resulting in a 29% increase in yields and a 25% rise in farmer income in 2024. The fresh funding will enable Eratani to enhance its technology infrastructure and expand operations across four major rice-producing regions: South Sulawesi, East Java, Central Java, and West Java.
The company plans to leverage tools like drones, satellites, IoT devices, and agricultural data centers to improve farm productivity and promote sustainable farming methods. However, Eratani’s approach is not just about technology. The startup recognizes that many farmers lack smartphones and digital literacy. Instead of pushing advanced tools, Eratani combines traditional methods with accessible technology, fostering a community-first approach to tech adoption.
This strategy has proven effective. “If one farmer adopts our platform, the rest of the community tends to follow,” said CFO Bambang Cahyo Susilo. This model accelerates adoption and addresses broader challenges like food security and climate goals. Eratani also supports unbanked rice farmers by offering access to credit based on factors like land ownership, soil health, pest risks, and irrigation quality.
The funding comes amidst recent controversies in Indonesia’s startup scene, including a report involving eFishery’s ex-CEO admitting to falsified financials. Eratani aims to rebuild trust through transparency and long-term value creation. “We work very transparently with all of our investors,” said CEO Andrew Soeherman. The company hopes to prove that not all Indonesian startups operate unethically and to build deeper trust with investors.
Eratani’s journey began in 2021, and it has since raised a total of US$13.6 million across pre-seed, seed, and Series A rounds. Instead of chasing fast growth, Eratani focuses on scaling sustainably into key rice-producing districts. By using data-driven insights, the company strengthens risk management, improves operational decisions, and boosts resilience across Indonesia’s fragmented agricultural landscape. The startup plans to grow its network to over 283,000 farmers by 2029, a testament to its long-term vision and commitment to transforming Indonesia’s rice farming sector.
