Eden Farm, an Indonesian agritech startup focussing on the farming supply chain, has received an undisclosed amount in a pre-Series A funding round, led by Australian VC firm Investible. AC Ventures, Corin Capital, and unnamed strategic angel investors also participated.
The fresh funds will be used to expand Eden Farm’s operations in the Java and Sumatra regions and offer increased stock-keeping units (SKU) selections for its merchant partners.
The company also seeks to develop technology to further automate its business processes and grow its farmers’ funding unit.
Indonesia is home to over 30 million farmers, with the agriculture sector contributing 14 per cent of its GDP — US$140 billion in market size. However, it is heavily fragmented with inefficient supply chains and significant margin leakages, limiting farmers’ income.
Founded in 2017, Eden Farm focuses on tackling the problem by connecting farmers and communities upstream with F&B businesses, including restaurants, street food vendors and central markets.
The Y Combinator alumnus aims to achieve this by bringing farmers’ produce directly to businesses. On the demand side, Eden Farm allows street vendors and restaurants to reduce costs, save time and increase income.
Besides, it supports farms by creating better access to quality inputs (such as seeds and fertilisers), as well as financing services to support their farming businesses.
Eden Farm claims it services over 25,000 merchants in 12 cities across Java. On the supply side, Eden Farm is supported by more than 1,500 individual farmers from the islands of Java and Sumatra. The company expects this number to grow exponentially in 2021, enabled by its stronger foothold and upstream sourcing capabilities.
“Eden Farm disaggregates the food supply chain by efficiently leveraging communal farming to provide just-in-time inventory to food wholesalers, resellers and hotels. The business has an incredible opportunity to decrease food prices and wastage across Indonesia,” said Daniel Veytsblit, Investment Director of Investible,
“Eden Farm has created strong defensibility through its upstream sourcing capability, demand aggregation and simplifying of the supply chain, enabling farmers to receive stable demand and buyers to purchase fresh produce at more affordable prices and better quality,” opined Adrian Li, Managing Partner of AC Ventures.
Image Credit: Eden Farm
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