Eratani secures US$6.2 million Series A to boost Indonesia’s agricultural transformation

• Funds will be used to accelerate adoption of advance technologies
• Claims to have empowered more than 34,000 farmers across Java and Sulawesi

Amid a sharp decline in startup funding across Indonesia, Eratani has successfully raised US$6.2 million (RM27.3 million) in a Series A round. The round was led by Clay Capital, with participation from TNB Aura, SBI Ven Capital, AgFunder, Genting Ventures, and IIX.

In a statement, the company said the raise underscores investor confidence in its 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. It added that with this new capital, Eratani will accelerate the adoption of advanced technologies, including precision agriculture tools, on-farm mechanisation, and sustainable cultivation practices.

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

Since its founding in 2021, Eratani claims to have achieved strong results through its end-to-end platform for smallholder rice farmers. It has empowered more than 34,000 farmers across Java and Sulawesi, many of whom gained access to formal financing for the first time. Additionally, the company has improved cultivation across over 13,000 hectares of rice farmland, increasing farmer yields by an average of 29% and incomes by 25% in 2024. It also reported enabling farmers to produce over 112,000 tonnes of rice and grain, contributing to national food security.

“At Eratani, we’re proving that economic and social impact can go hand in hand with environmental sustainability,” said Andrew Soeherman, co-founder and CEO of Eratani. “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.”

Eratani’s approach addresses the fundamental challenges in 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 CFO of Eratani, emphasised that digitalisation is a key driver of success. “By utilising 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.”

Rice is a dietary staple for over half the world’s population, providing more than 70% of daily calories in many developing countries. Yet, it is also one of the most environmentally damaging crops. Flooded rice fields contribute approximately 1.5–2% of global greenhouse gas emissions—comparable to the entire aviation sector—and account for nearly half of all emissions from croplands. Additionally, rice has a particularly high water footprint, requiring 3,000 to 5,000 litres of water per kilogram—two to three times more than other major cereals.

Lead investor Clay Capital highlighted Eratani’s unique market positioning. “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.”