Crowde, an Indonesian peer-to-peer lending startup aims to help the farmers struggling financially. In Indonesia, agriculture contributes a significant portion to the country’s development, however, working capital is still a major concern for farmers. Most of the farmers get their working capital from the loan sharks and the middlemen instead of a bank as they find it as a more feasible option. The rates at which the loans are offered by middlemen are extremely high. As a result, the number of farmers in the country is decreasing due to the perception that being a farmer will lead them to poverty.
Recently Crowde secured US$1 million funding from Mandiri Capital Indonesia.
Here is how Crowde helps farmers
Crowde, established in 2015 believes that all the farmers have the right to prosper and get better welfare. Keeping this in mind, the founders, Yohanes Sugihtononugroho and Muhammad Risyad Ganis created a platform where funds could be raised from the community as working capital for the Indonesian farmers. The company works on the crowd-lending method and channels the community funds to farmers’ projects.
Crowde is working towards empowering farmers to become ‘Agropreneur’. The outcome of the farmer’s project will be given back to the community with a capital value based on the profit-sharing scheme.
Crowde creates an efficient agricultural ecosystem
The company focuses on sectors that are considered to be productive in the country, such as agriculture, commerce, and fishery. The Crowde app provides access to people who are willing to invest their funds in Indonesian farmers who produce poultry, beef, fish, chili or rice and share in the profits made. The field agents from Crowde visit across Indonesian villages to persuade the farmers to sign up for the platform. Crowde has managed to attract 22000 investors to date.
The farmers instead of cash receive farming tools, fertilizers, seeds, and pesticides which are purchased in bulk by the company at a lower rate from an agriculture supplier partner. Crowde also connects the farmers with the buyers and suppliers so that they can get the best deals possible. The company also strives to educate farmers about financial and agricultural management.
The Road Map
Crowde has recently secured US$1 million funding which was led by Bank Mandiri Indonesia’s corporate venture capital unit, Mandiri Capital Indonesia. The company plans to use these funds to build new technologies to support the farmers in the country. In 2018, Crowde had received an undisclosed amount of funding from Gree Ventures, Crevisse Partners, and other angel investors.
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