ES is an Agriculture Technology-as-a-Service (ATaaS) company that adopts efficient machine technology and data to improve farming. ES’ goal is to build a community of paddy farmers that are tech-savvy and data-driven to help them create a sustainable long-term income.
ES wants to improve the income level of thousands of farmers in Malaysia as well as contribute to the increase in the national paddy production level. ES projected that it will be operating in Malaysia, Indonesia and Thailand by that time. To create even more impact and scale further, ES hopes to explore an IPO as a way to continue to sustain its growth.
ES believes that the livelihood of paddy farmers can be improved. With the right strategies, particularly through the development and implementation of data insights and technology-based ecosystems, the income level of farmers can be improved to be beyond its required sustainability.
As part of the first phase, ES aims to help its community of farmers increase their income from RM2,500 to RM5,000 per month. Despite its clear social objectives, ES is cognizant that the project still needs to be implemented with commercial viability as its prime consideration. This will be achieved by providing services that are currently consumed by the farmers packaged in an attractive offer. ES anticipates a huge SAM of RM82 billion in 5 years and they intend to be the key player.
From year one to year five, ES will generate revenue by providing harvesting services; other paddy cultivation related machinery services and farm management services driven by data collection and insights. In addition, its BIDARATI platform will be able to generate revenue through transaction fees of trading and provision of services on the platform.
The BIDARATI platform was named after big data, analytics and artificial intelligence (AI), and it is the brain of their data-driven initiatives. The BIDARATI platform will be created through multiple collaborations with established, mature and proven systems and organisations.
The platform has nine components and will be developed in stages. At the start, BIDARATI will utilize the AGRIVI fleet management system and subsequently AGRIVI’s farm management system through a white label program. To date, AGRIVI has positively impacted farmers in 150 countries and has been voted as the best Farm Management Software in the world.
The platform also comes with an e-wallet component. This will be driven by the Berrypay platform which is already in use locally as well as in other countries (Indonesia, Singapore and UAE). Berrypay boasts a membership of more than 3 million.
ES is also going to work closely with FSX—a Singapore based AI outfit focusing on food security to execute the big data and AI components of the platform.
The BIDARATI platform operates as follows:
Farmers in Malaysia face a lot of issues and most of them are related to cultivation costs and timing of getting seeds and fertilisers. These challenges impacted their production yield and hence their income. From what Estet Sepakat has observed, farmers generally do not have a holistic picture of how various dynamics of the industry affects their income level. Providing them with the services that improve their yield and lower their cultivation costs will have an immediate and clear impact on their income and will be immediately noticed.
ES believes its approach of delivering services could help these farmers. For example, it plans to supply harvesters that are below the market price—generally, the market price is about RM55 to RM60 per ton harvested. Instead of cutting prices, which will create unhealthy competition, ES translates it into discounts for other services which will then encourage the farmers to use its other services. As ES will be the company with the most comprehensive services, it can easily translate this strategy into its business activities and revenue.
Its first goal is to help the farmers tackle their main and immediate issues and problems so this would give them relief over a short time and encourage them to further use their other services.
Similarly, ES also works with brokers and appoints them as their representatives, and they become sales channels of the company. The brokers normally have between 50-200 farmers each using their service.
Finally, ES’s partner, Koperasi FELCRA, who manages the farmers, has a credible reputation in the paddy farming industry. They are a five-time winner of the Best Rural Cooperative in Malaysia award and have vast experience in managing large scopes of land and farmers that currently cover approximately 4,378.87 Ha of paddy farms and 1,554 members. Working with Koperasi Felcra will provide the endorsement that other farmers want to see.
2021: RM 2,359,476
2022: RM 11,423,353
2023: RM 21,822,538
2024: RM 45,846,275
2025: RM 65,384,684
ES focuses on solving the issues of poverty amongst paddy farmers and assisting the government to achieve stability of their staple food security.
Its team consists of a group of highly experienced, passionate and dedicated individuals. Its founders studied at the University of Chicago, Universiti Kebangsaan Malaysia, Birmingham University and more, and have collectively, more than 80 years of working experience in various industries, including related industries such as agriculture, paddy cultivation and production, and software architecture and development. With the right blend of paddy cultivation and data architects and experts, ES is the most qualified company in the industry to implement this project and to improve the livelihood of farmers through machinery and technology.
ES anticipates its first years of operations to focus on organic growth, revenue stabilisation, and achieving breakeven. As part of its exit strategy, the company targeting to offer to purchase shares from investors with a value that will increase by a projected 16% after every 12 months.