Eratani Raises £4.95M to Boost Yields and Support Smallholder Farmers with Smart Agtech

• Eratani raised £4.95 million in Series A funding to deepen its community-driven ag-tech platform and provide more than 34,000 smallholder farmers from Indonesia with digital tools geared towards increasing rice production.
• The platform is a mixture of conventional farming with precision agriculture, helping to enhance crop yield by 29% and farmer income by 25% in 2024 in alignment with Indonesia’s vision for food self-sufficiency by the year 2027.

Eratani, the agtech startup from Indonesia, recently raised £4.95 million ($6.2 million) in a Series A funding to help the rice farmers in Indonesia adopt digital farming, improve productivity, and provide a better future. The funding majorly stemmed from Clay Capital, along with contributions from SBI Venture, TNB Aura, AgFunder, Genting Ventures, and IIX.

Eratani, with the said funding, will expand in Indonesia and build collaborations with partners in the region to introduce precision farming technologies. These initiatives will ensure the efficiency of rice production.

Crossing the Chasm of Digital Divide in Farming

Rice is a staple food for Indonesians, but rising demand for rice and dwindling numbers of people who are willing – or able – to farm are serious challenges the country is facing. In the 1970s, about 70% of the population was engaged in agriculture, but that percentage has now fallen to 28%.

However, according to Eratani Chief Financial Officer and Chief Operating Officer Bambang Cahyo Susilo, the introduction of technology solutions is not as simple as applying Silicon Valley-type apps to the so-called remote villages.

“There are so many players in Southeast Asia framing themselves as Silicon Valley-like startups with technology,” he tells AgFunderNews. “But smallholder farmers will never buy this kind of technology.”

Less than half of farmers possess smartphones, and low-income levels correlate with a lack of financial literacy. It’s not just access to tools but also the ability to use them and having a tangible benefit.

Eratani understands this better than most. Their founders come from farming families in small Indonesian villages, giving the company what Susilo refers to as a “deeper understanding” of what farmers truly need.

A Community-Centred Approach That Works

Instead of top-down tech distribution, Eratani blends traditional agriculture with digital technology while keeping communities at the core of every single activity.

“By having a community-centric approach, it’s accelerating and speeding up the decision-making. If one farmer in a community understands the value of using Eratani’s platform, the remaining will follow, so you never have to knock door to door. The whole approach is very community-driven and driven by our farmers,” explains Susilo.

This grassroots model has pushed Eratani’s fast growth. Today, the company services an estimated 34,000 rice paddy farmers and manages more than 13,498 hectares of land in the country.

Help for Farmers Right from Seed to Sale

Eratani is looking to make smallholder farmers live on the digital farming platform. Financing, supply procurement, and ultimately selling crops at fair prices are all taken into account in the agricultural process.

As John Friedman, Asia director at AgFunder, puts it:

“Eratani’s integrated approach to strengthening the rice value chain—leveraging technology to enhance crop yields, improve farmer livelihoods, and boost food security—is a great example of the innovation we believe is critical for the future of agriculture in Southeast Asia.”

“Their ability to deliver measurable, sustainable benefits to smallholder farmers while driving systemic improvements in Indonesia’s food system is what makes Eratani such a compelling investment. We look forward to supporting their continued growth and impact.”

Eratani helps farmers in the following ways:

• EraFarm provides access to funding, seeds, fertilisers, tech support, planning tools, and crop insurance.
• EraKios collaborates with trusted local suppliers, ensuring reasonable yet high-quality agricultural products.
• EraMarket ensures farmers get competitive prices for rice sales, one of their major challenges: access to markets.

And this works; 2024 alone saw an increase in crop yield by 29% and an increase in income by 25%, as farmers using Eratani’s platform grew a total of 112,660 tonnes of grain and rice.

A Bigger Mission: Food Sovereignty by 2027

Currently, Indonesia imports considerable amounts of food, including approximately 10-12% of its rice consumption. However, the government aims to achieve self-sufficiency by 2027.

Eratani will assist in making this happen. Founder and CEO Andrew Soeherman claims the company is “fully committed” to this purpose.

“Rather than prioritising rapid expansion, we focus on building a strong foundation to scale strategically into key districts, ensuring long-term value for farmers and the agricultural ecosystem,” he explains.

Susilo adds, “As digitalisation plays an increasingly vital role in agriculture, Eratani leverages data-driven insights to reinforce its risk mitigation framework and refine its growth strategies. This strategic approach enhances operational efficiency, strengthens decision-making, and fosters a more resilient agricultural ecosystem while supporting our expansion into key districts.”

The Conclusion

The message sent by Eratani’s outsized tale can be that not all innovations mean disruptions, but simply building communities where there weren’t any. And just like how it connects with farmers when they scale both traditionally and technologically, allowing these people to come first before profit, Eratani will not only facilitate the growth of more rice in Indonesia, but it will also strengthen the future of agriculture.