What’s wrong with TaniHub Group?
Here’s why fintech doesn’t works out in agricultural sector (for now).
Introduction.
- Company Early Stage
PT TaniHub Indonesia or “TaniHub” was founded in 2015 by Michael Jovan Sugianto and William Setiawan. TaniHub is one of Indonesia's agricultural e-commerce that strives to eliminate the problem of supply and distribution of agricultural products. Starting from mobile app technology, TaniHub successfully connects farmers with the market enabling them to sell
their agricultural products at fair prices and sustainable quantities. One of the co-founders and CEO of Tanihub (2017), Ivan Arie Sustiawan, said that Tanihub helps farmers sell their agricultural products online directly to consumers and expands the range of sales of agricultural products throughout Indonesia.
TL;DR: 2015, supply and distribution, agri-tech, agricultural products, social impact, technology.
- Ecosystem Development (TaniGroup)
“ TaniHub through TaniHub Group is a group of agriculture technology and egroceries companies that expand in 2016.
Starting from a dream to improve the welfare of small farmers, the TaniHub Group through its business units, namely TaniHub, TaniHub Food Solutions, TaniFund, TaniSupply, TaniFoundation, and Tani Mitra Koperasi to this day continues to strive to create a better agricultural ecosystem.”
Aspires to build an end-to-end agricultural ecosystem to construct a footprint in every stakeholder’s heart through quality products and services and the interest of all parties involved. Since the first day of its presence in 2016, the TaniHub Group has always inserted various innovations in every side of the ecosystem, from fields, warehouses, restaurants, stalls, and small roads, to every consumer’s dining table in the form of farmers’ crops in a state of good health.
- TaniHub (B2C)
As mentioned above, TaniHub early mission is to help farmers sell their agricultural products online directly to consumers and expands the range of sales of agricultural products throughout Indonesia.
2. TaniHub Food Solution (B2B)
Focusing on B2B to support the food industry and businesses by providing fresh produce and ingredients that can be customized to suit business needs.
3. TaniFund (P2P)
“ TaniFund is a subsidiary of TaniHub Group (Agritech and Egrocery Startup). TaniHub connects farmers from various regions in Indonesia with businesses. However, access to trades and marketing is not enough. Many farmers in Indonesia still have limited access to credit to fund their agriculture projects.
Seeing this problem, TaniHub launched TaniFund to provide funding for farmers in Indonesia. With the help of capital from funders, farmers in Indonesia can develop their cultivation businesses. By funding at TaniFund, funders also help improve the local economy in the area of the farmer group being funded and support food security in Indonesia.”
Launched in 2017, According to the business unit's mission is to build a leading financial technology platform to grow the agricultural ecosystem and improve farmers’ livelihood. TaniFund is just like another P2P Lending model with 2 main indivisible products which are “the Lender” and “the Borrower”. TaniFund offers Lenders from 12% up to 18% interest per year.
More Information about TaniFund (Here)
4. TaniSupply (C2B Support)
Launched in 2019, TaniSupply mission is to provide agriculture technology solutions to improve the value chain. TaniSupply schemes under its own entity will be much more aggressive in developing the agricultural supply chain business. This “maneuver” due to the business license of TaniSupply stands under the regulation of a different ministry than TaniFund (OJK) and TaniHub (Kemenkominfo).
“We (TaniSupply) are in the middle chain, at front there is TaniFund and behind us is TaniHub for the online sales channel. TaniSupply will take care of purchasing from farmers, there are chain functions, warehouses, last mile delivery, quality control, and others,” — Vincentius Sariyo (TaniSupply Director)
Suriyo also adds the initiation of TaniSupply was actually due to the desire to form a comprehensive agricultural ecosystem from upstream to downstream. There are still many issues in the field that can be solved with technology.
TL;DR: During mid-2016 TaniHub Group launched its business units with various business models, these are namely TaniHub, TaniHub Food Solutions, TaniFund, TaniSupply, TaniFoundation, and Tani Mitra Koperasi.
- Funding Rounds.
Back in 2019, the company, which was established in 2016, partnered with 35 thousand farmers from 840 groups. According to Crunchbase, TaniHub has raised a total of $94.5M (Around Rp 1.4T) in funding over 4 rounds. Their latest funding was raised on May 21, 2021 from a Series B round. TaniHub is funded by 13 investors. MDI Ventures and Tenaya Capital are the most recent investors. The foremost external funding for TaniHub or Seed Round was raised by Alpha JWC Ventures on April 25, 2018 (3 years after the company was founded) with an amount of $2M.
- Debts.
Creditors ultimately may opt to pursue either bankruptcy or suspension of debt payment obligation (Penundaan Kewajiban Pembayaran Utang or PKPU) proceedings through the relevant Commercial Court for the resolution of unpaid debts. This PKPU was filed by PT Alpha Swara Consultants and Ludwina Emilia Maks to the Commercial Court at the Central Jakarta District Court on Friday (9/12/2022). The contents submitted by the applicant to the Central Jakarta District Court (PN Jakpus) are:
- Asking the judges to grant the suspension of debt payment obligation or PKPU request against TaniHub and declare the company is under PKPU with all the legal consequences.
- Establish a temporary PKPU against TaniHub for a maximum period of 45 days from the reading of the decision.
- Appoint and appoint a supervisory judge from the Central Jakarta District Court Commercial Court to supervise the PKPU settlement process.
- Appoint and appoint Muniar Sitanggang and Hendro Widodo as curator and management team if TaniHub is later declared bankrupt.
This lawsuit against TaniHub caused by the company’s peer-to-peer lending business unit, TaniFund, posted a high level of bad loans.
TaniFund reports TBK90, namely the borrower’s success rate in paying within 90 days, of only 36.07% (2023).
*Editor Note: As any information on this story created, the company is still recognize as private company and may include public view/opinion and personal assumption. -Jeremy
