DELOS is developing a pond management system that they believe will help farmers increase their productivity by 50 to 150 percent. Founded by Guntur Mallarangeng, Bobby Indra Gunawan and Alexander Farthing in 2021, it brings together a multidisciplinary team spanning aquaculture, marine biology, technology and business.
The funding was led by Arise, a collaborative fund created by MDI Ventures and Finch Capital. MDI Ventures itself participated in the round, alongside other investors, such as Hendra Kwik (Number Capital), Irvan Kolonas (JAPFA Executive) and iSeed Asia.
According to Mallarangeng, the platform “will help accelerate the industry by creating value for farmers, increasing the volume of domestic exports and strengthening Indonesia’s reputation as the world’s leading aquaculture producer.”
The funds will be used by DELOS to upgrade and strengthen its software as well as to develop value chain integration and bring more shrimp farming partners on board. The startup is in partnership with Alune Aqua *, a leading aquaculture fintech company, and Dewi Laut Aquaculture (DLA), a major aquaculture company in Indonesia. Drawing on thousands of hours of research into Alune Aqua shrimp farming practices and hands-on industry experiences from DLA, DELOS plans to accelerate the development of its in-house shrimp production software. .
DELOS’s mission is to modernize and encourage the growth of the Indonesian aquaculture industry, which still faces classic challenges including low adoption of technology, non-standard management practices and limited access to finance. These factors created bottlenecks in the middle of the value chain and limited the production of downstream processors to an average capacity of 40-60%. Less than 5 percent of farms are four times more productive than neighboring farms (40 tonnes versus 10 tonnes / Ha).
It is this productivity gap that has kept the $ 2 billion industry from realizing its potential to become a $ 4 billion industry, according to the Indonesian Ministry of Fisheries and Maritime Affairs. DELOS’s interdisciplinary team and cutting-edge technology will be essential in supporting the national agenda to promote this growth while maintaining economic, social and environmental sustainability.
Farthing is excited about how DELOS can help not only increase the productivity of shrimp farming, but also make shrimp farming operations more calculable, which would help increase access to finance. Until now, shrimp farming has been viewed by financial institutions as a high risk activity with a wide variety of factors affecting the success of a production cycle. Additionally, financial institutions lack the knowledge and framework to assess the risks associated with shrimp farming, forcing them to avoid the industry altogether.
“DELOS’s technological solution combined with Alune Aqua’s connection to the financial sector could be the connection point between financial institutions and shrimp farmers, which would have a huge impact on the industry,” said Farthing.
In an official statement, Arise partner Aldi Adrian Hartanto explained that the ongoing challenges of the layered value chain, low productivity and lack of funding are hampering the growth of the Indonesian shrimp industry which does not has not been fully utilized, even though it represents 77%. of the total value of aquaculture products.
“DELOS technology solutions have successfully immersed technology and operations into the culture and infrastructure of local farmers while connecting them with existing stakeholders. This leads to higher FCR (feed conversion rate), SR (survival rate) and harvest, making it a very effective tool, ”he concluded.
* Alune Aqua is part of Hatch’s investment portfolio, but The Fish Site retains editorial independence.