Trust, Tech, and Transparency: Eratani’s $6.2M Strategy for Agritech Growth

Indonesia-based agritech firm Eratani has secured US$6.2 million in Series A funding to further its mission of transforming rice farming with technology and sustainable solutions. Its digital platform supports farmers in optimizing their operations, boosting crop output, and addressing the country’s growing rice needs more effectively.

The funding round, which included AgFunder, SBI Ven Capital, TNB Aura, Genting Ventures, and IIX, was led by Clay Capital, an investor focused on agrifood tech. The fresh capital will help Eratani expand its platform and deepen its impact within Indonesia’s agricultural sector.

The funding comes when investor confidence in Indonesia’s agritech sector is shaken. According to Tech in Asia, total funding for the sector fell sharply to US$33.2 million in 2024 from US$135.6 million the previous year.

Against this backdrop, 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.

Eratani’s fundraising follows recent controversies, including a report involving eFishery’s ex-CEO admitting to falsified financials. CFO Bambang Cahyo Susilo said the company wants to use this moment to prove not all Indonesian startups operate unethically. “We hope this builds deeper trust with other investors,” he noted, adding that positive signs, such as Fore Coffee’s successful IPO, point to a sector recovery.

The fresh funding will help Eratani 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 increase the use of tools like drones, satellites, IoT devices, and agricultural data centers to improve farm productivity and promote sustainable farming methods.

Founded in 2021, Eratani offers a full-stack platform supporting more than 34,000 smallholder farmers and managing over 13,000 hectares of farmland. Its integrated model helps with everything from financing and planning to market access, resulting in a 29% increase in yields and a 25% rise in income in 2024. The company plans to grow its network to over 283,000 farmers by 2029.

Eratani takes a community-first approach to tech adoption, recognizing that many farmers lack smartphones and digital literacy. Instead of pushing advanced tools, the company combines traditional methods with accessible technology. “If one farmer adopts our platform, the rest of the community tends to follow,” said Susilo. This model accelerates adoption and addresses broader challenges like food security and climate goals.

Eratani supports unbanked rice farmers by offering access to credit based on factors like land ownership, soil health, pest risks, and irrigation quality. Earlier, The startup raised US$7.4 million across pre-seed and seed rounds, helping build its foundation for long-term impact.

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.

Contributed by: Byungho Lim