Aruna Secures $35M Funding to Expand Sea-to-Table Platform

Aruna Secures $35 Million Series A Funding to Empower Indonesian Fisheries

The genesis of Aruna stemmed from a desire among its founders, who initially connected during their university studies in information technology, to leverage their expertise in aiding family members engaged in small-scale fishing operations. Indonesia stands as a prominent global producer of seafood, yet its fisheries sector is characterized by fragmentation.

This fragmentation often results in small fisheries confronting challenges related to fluctuating demand and price volatility. Aruna was conceived to bridge the gap between these fisheries and end consumers, such as restaurants and exporters, mirroring the aggregation strategies employed by farm-to-table initiatives within the agricultural sector.

Significant Investment and Sector Leadership

Aruna recently announced the successful completion of a $35 million Series A funding round. The investment was spearheaded by Prosus Ventures and East Ventures Growth Fund, with additional participation from SIG, alongside returning investors including AC Ventures, MDI, and Vertex Ventures.

This funding represents the largest Series A investment recorded to date within Indonesia’s agritech and maritime industries, highlighting Aruna’s significant position in the market.

Focus on Sustainability and Small-Scale Fisheries

The company’s core focus lies in collaborating with smaller fisheries – those operating vessels with a capacity of approximately one to two metric tonnes. Sustainability is a central tenet of Aruna’s operations, with a commitment to supporting suppliers in meeting the targets outlined in United Nations Goal 14.

These goals encompass the prevention of overfishing, the protection of vital coastal ecosystems, and the provision of enhanced resources and market access for small-scale fishing communities.

Founding and Origins

Established in 2016, Aruna was founded by Farid Naufal Aslam, Indraka Fadhlillah, and Utari Octavianty. The founders first met while pursuing studies in information technology administration and management at Telkom University.

Fadhlillah and Octavianty both hailed from families deeply rooted in the fishing industry, inspiring them to develop a solution addressing the challenges they personally observed.

Indonesia’s Seafood Potential

“Our initial concept centered on this idea, but we quickly recognized the substantial advantage presented by Indonesia’s position as a major agricultural nation with immense potential within the seafood industry,” explained Aslam to TechCrunch.

Data from the World Bank confirms Indonesia’s status as the world’s second-largest fisheries producer, generating approximately $4.1 billion in annual export revenue and sustaining over 7 million jobs.

Addressing Key Industry Challenges

Through their analysis of coastal communities, Aruna’s founding team identified two primary issues. These were limited market access and the difficulty in securing fair prices for seafood, alongside restricted access to essential working capital.

Streamlining the Supply Chain

To tackle the issue of market access, Aruna developed a platform designed to shorten the traditionally lengthy supply chain. Aslam noted that this chain can often involve six or seven intermediaries between fisheries and ultimate buyers, such as restaurants, markets, or exporters.

The platform facilitates purchase orders from buyers, which are then distributed to organized fishery communities specializing in specific seafood types. This approach enables demand prediction, guarantees repeat business, and actively prevents overfishing.

Logistics and Product Expansion

Aruna has also established a robust logistics network, encompassing over 45 collection sites. These sites serve as warehouses where fisheries deliver their catch for quality control, processing, and packaging.

Aruna’s warehousing infrastructure combines company-owned facilities with those operated in partnership with other organizations. Deliveries are managed through collaborations with third-party logistics providers.

Currently, the platform offers around 20 product categories and intends to utilize the new funding to broaden its offerings. It specializes in high-value commodities like lobster, which are exported to markets including Malaysia, Singapore, China, Taiwan, Hong Kong, Canada, and the United States.

Commitment to Sustainable Practices

A key requirement for fisheries participating on the Aruna platform is adherence to its stringent sustainability protocols. The World Bank identifies overfishing as a significant threat to Indonesia’s fisheries, impacting marine biodiversity.

Aruna’s team collaborates with fisheries to standardize their equipment, ensuring compliance with government regulations and promoting fishing practices in areas not subject to overfishing.

By concentrating on a limited range of seafood types, fisheries working with Aruna can enhance product quality, ensure traceability, and effectively manage price fluctuations.

Facilitating Access to Capital

Addressing the challenge of limited access to working capital, Aruna partners with financial institutions and fintech companies to provide fisheries with low-interest, collateral-free loans for equipment and other business needs.

When a fishery applies for a loan through the platform, Aruna can leverage transaction data collected on the platform to provide valuable credit scoring information.

Leadership Appointments and Future Growth

Alongside the funding announcement, Aruna revealed the appointments of Budiman Goh as its president and Utari Octavianty as its chief sustainability officer. The funding will be allocated to expansion into new regions within Indonesia, as well as investments in data analytics, technology development, and the implementation of IoT devices for enhanced quality control.

Aruna’s immediate focus remains on Indonesia, given the country’s vast number of fisheries.

“We currently have 21,000 fishermen on the platform, but Indonesia is home to approximately 2.7 million fishermen, indicating substantial potential for growth,” Aslam stated.

Industry Recognition

Sachin Bhanot, Prosus Ventures’ head of Southeast Asia investment, commented, “Having built a robust supply chain and technology infrastructure steeped with deep industry knowledge and expertise, we believe Aruna is uniquely positioned to service the growing global demand for sustainable fishery product, while supporting the livelihood of local fishermen.”