The inception of the agritech startup was a convergence of personal experiences and professional aspirations. The journey began with Afif, the founder, who grew up amidst extensive farmland, deeply involved in agriculture.
Witnessing the labor-intensive nature of farming and the associated challenges inspired Afif to seek smarter solutions for farming. This vision materialized during his participation in the ‘Techstar Startup Weekend,’ where he and co-founder Fahim initially worked on a home automation project. This project pivoted into an agritech venture focused on smart farming solutions, catalyzed by their shared enthusiasm for technology and innovation thus forming SystemSage Solutions.
The team expanded with the addition of Wei Jie, another co-founder who distinguished himself by winning the inaugural Social Innovation Challenge organized by the Innovation & Entrepreneurship Center (IEC) and the Center of Sustainable Small-owners (CSS) at the Asia School of Business (ASB). Wei Jie’s project addressed critical issues in the oil palm industry, particularly first-mile traceability. This shared vision of leveraging technology to create value and enhance agricultural productivity brought the team together, with a commitment to improving farming practices in Malaysia and Bangladesh.
Tackling Key Agricultural Challenges
In the upcoming year, the startup aims to address several pressing issues within the agricultural sector. The primary focus is on enhancing agricultural productivity through automation, which includes improving labor efficiency, irrigation practices, and crop monitoring. The team is also dedicated to advancing finance and inventory management by employing data-driven decision-making and fostering education to boost agricultural labor productivity.
Elevating farmers’ income is a central goal, along with improving crop yields and utilizing waste productively. Access to finance, including loan facilities and agricultural insurance, will be improved to reduce vulnerability and support sustainable practices. Infrastructure development will also play a crucial role, with efforts focused on enabling supply chain traceability and implementing effective incentive mechanisms to promote environmental sustainability.
Why Investors Should Pay Attention
Investors are encouraged to consider this startup due to the significant problems it aims to solve and the large market potential. The smart farming market is valued at $18.5 billion, with ample room for improvement, particularly in developing countries like Malaysia, where agricultural productivity lags behind that of developed nations. The startup addresses critical gaps, such as reliance on labor, automation deficits, and limited access to finance and education.
Moreover, with the rising emphasis on Environmental, Social, and Governance (ESG) criteria and consumer demand for sustainable products, the global supply chain traceability software market is growing at a compound annual growth rate (CAGR) of 8.8%, reaching $15.66 billion as of 2022. The startup’s integrated solutions offer a comprehensive platform for monitoring and managing agricultural businesses, positioning it as a valuable investment opportunity.
The Strength of the Team
The startup boasts a robust leadership team with diverse expertise. Wei Jie, the CEO, brings a decade of experience in the financial and regulatory sectors, including a successful exit from a food and beverage business. His recent accolade from the Social Innovation Challenge highlights his commitment to sustainability and traceability in agriculture. Wei Jie holds a Bachelor’s degree in Economics from the London School of Economics and is pursuing an MBA from the Asia School of Business in collaboration with MIT Sloan.
Afif, the Founder & CTO, offers extensive experience in software, hardware, and network engineering. His academic excellence is marked by his nomination as ICSDI Valedictorian and a bronze award at INVID 2023. Afif’s practical experience in developing smart farming solutions stems from his background in extensive farming and his comprehensive research in the field.
Chee Hoe, the business advisor, is the CEO of Qarbotech, an Agritech company specializing in photosynthesis enhancers and a portfolio company of 500 Startups. His involvement underscores the startup’s credibility and industry connections.
Expanding the Business Model with Investment
Investment will be instrumental in scaling the startup’s operations. With additional funding, the team plans to accelerate customer acquisition for their smart farming and traceability solutions in Malaysia and beyond. Expansion will include further research and development to enhance agricultural technology and explore new areas such as financial technology and inclusion, including digital insurance and banking for small farmers. The investment will also support industrial automation and tech-enabled education initiatives to build a sustainable talent pipeline in the agricultural sector.
Target Market and Demographics
The startup targets high-value crop farms, including oil palm, durian, and medicinal herbs. These sectors offer substantial returns on investment in smart farming technology and are driven by consumer and retailer interest in sustainable supply chains. Oil palm farms are a primary focus due to their significant market share in global production and the urgent need for traceability solutions in response to new European regulations affecting Malaysian exports.
Overcoming Market Challenges
Entering the agricultural market presents several challenges, including finding a scalable niche and navigating multi-layered distribution networks. To address these challenges, the startup plans to collaborate with partner farms for pilot projects, align with adjacent agricultural startups to leverage distribution channels, and work with established distributors for market penetration. Additionally, partnerships with universities will support research and development, strengthening the scientific foundation of their products.
Reflections on University-Based Startup Founding
Founding the startup while attending university has been a formative experience for the team. Afif and Fahim’s participation in the Techstar Startup Weekend at UCSI University marked the beginning of their entrepreneurial journey. Wei Jie’s success in the Social Innovation Challenge further solidified their commitment to agricultural innovation. The startup experience has allowed the team to apply academic learnings to real-world problems, creating value through technology and sustainable business practices.
Participation in LaunchX provided invaluable insights, including understanding startup mechanics, refining ideas, developing effective pitches, and building a network of industry experts and investors. The program’s mentorship helped the team navigate challenges and enhance their overall strategy, contributing to their growth and success.
Potential Collaboration for Expansion
Among the startups in the current LaunchX cohort, SproutExplorer stands out as a potential partner. Both companies leverage IoT technology for agricultural applications, with complementary focuses—SproutExplorer on B2C and the startup on B2B. Collaborating with SproutExplorer could enhance public awareness and education on IoT technology in agriculture, creating synergies and expanding market reach.
In conclusion, the agritech startup presents a compelling opportunity for investors, offering innovative solutions to critical agricultural challenges and promising significant returns. With a strong team, clear goals, and a strategic approach, the startup is well-positioned to make a meaningful impact on global food production and sustainability.