Indonesia’s Eratani secures $6.2M in Series A funding led by Clay Capital

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Indonesian agricultural technology company Eratani has successfully raised $6.2 million in a Series A funding round led by Clay Capital.

The round also saw participation from TNB Aura, SBI Ven Capital, AgFunder, Genting Ventures, and IIX, Eratani said in a statement on last Thursday.

The raise underscores investor confidence in Eratani’s ability to transform Indonesia’s rice sector while directly supporting the government’s accelerated goal of achieving national rice self-sufficiency by 2027, a key priority for the Prabowo administration, said the statement.

With this new capital, Eratani will accelerate the adoption of advanced technologies including precision agriculture tools, on-farm mechanization, and sustainable cultivation practices.

These innovations aim to further boost productivity and profitability, while supporting Indonesia’s broader climate and sustainability goals.

“At Eratani, we’re proving that economic and social impact can go hand-in-hand with
environmental sustainability,

“Our focus isn’t on rapid expansion but on building a robust foundation that allows us to scale strategically, creating long-term value for farmers and the agricultural ecosystem while supporting Indonesia’s food security goals,” said Andrew Soeherman, Eratani’s Co-founder and Chief Executive Officer.

Established in 2021, Eratani is an integrated agricultural technology company aims to improve farmer welfare through innovative solutions and technology-driven approaches.

By facilitating access to financing, knowledge, high-quality agricultural inputs, and market opportunities, the firm enables farmers to enhance productivity and long-term sustainability.

Through a seamlessly connected ecosystem spanning the entire agricultural value chain from upstream to downstream, it drives efficiency and resilience across the sector.

Since its founding, Eratani has demonstrated strong results through its end-to-end
platform for smallholder rice farmers.

The firm has empowered over 34,000 farmers across Java and Sulawesi, many gaining access to formal financing for the first time.

It has also partnered with 600 agricultural kiosks and 70 rice milling units, strengthening its role in the agricultural value chain.

It has improved cultivation across 13,000+ hectares of rice farm and and increased farmer yields by an average of 29 percent and incomes by 25 percent in 2024.

The firm has also produced over 112,000 tons of rice and grain, strengthening national food security.

Eratani’s approach addresses the fundamental challenges facing Indonesia’s rice sector by connecting previously isolated stakeholders and providing comprehensive support throughout the farming cycle.

The company’s digital platform enables smallholder farmers to access affordable financing, high-quality inputs, agronomic advisory services, and improved market access.

Bambang Cahyo Susilo, Co-founder and Chief Financial Officer of Eratani, emphasized that digitalization is a key driver of success.

“By utilizing data-driven insights, we’re able to manage risk more effectively
and support smarter decisions on the ground,

“This not only improves operational efficiency but also fosters the development of a more resilient farming ecosystem as we expand into critical districts across the country,” he added.

It is noted that rice is a dietary staple for over half the world’s population, providing more than 70 percent of daily calories in many developing countries.

Yet, it is also one of the most environmentally damaging crops.

Flooded rice fields contribute approximately 1.5 percent to 2 percent of global greenhouse gas emissions—comparable to the entire aviation sector—and account for nearly half of all emissions from croplands.

In addition, rice has an exceptionally high water footprint, requiring 3,000 to 5,000 liters of water per kilogram—two to three times more than other major cereals.

“Eratani is redefining what’s possible for smallholder farmers in Indonesia” said Gerard Chia, Partner at Clay Capital.

“As the “connective tissue” in a highly fragmented rice farming ecosystem, their farmer-first, integrated model sets them apart from typical agritech platforms,

“Beyond improving farmer livelihoods and productivity, Eratani has the potential to drive systemic change by introducing sustainable farming practices and creating future
opportunities for farmers as carbon markets continue to evolve,” he added.

 

#AgriTech #FoodSecurity #SustainableFarming #RiceInnovation #FarmerEmpowerment

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