PemPem
Palm oil drives more tropical deforestation than any other crop. The conversion of forest to plantation is lucrative, and it’s hard for landowners to resist.
The Idea
A Traceable Commodity Trading Platform
Total Investment
600000
Grants
0
Equity/SAFE
0
Debt/Convertible Debt
Funded Since
2022
Geography
Sector
Structure
The Mission
End commodity-driven deforestation.
How It Works
In an industry rife with cheating, PemPem pays smallholder palm oil farmers fairly and on time—farmers aren’t allowed to cut down forests, but they make more money. PemPem sells the fruit to mills that can then claim full traceability, boosting their sales to deforestation-conscious buyers. The result is farmers earn more and forests survive.
The Dream
Companies only buy commodities that are traded on deforestation-free, traceable platforms.
Why We're In
Indonesia's 3 million smallholders and $20B annual palm trade represent massive potential. PemPem's digital platform has impressive early traction—including corporate partnerships with players like Unilever who increasingly need verified deforestation-free supply chains for markets like the EU. We’re betting other markets follow. PemPem’s culture and practice of relentless iteration inspire optimism.
Delivery
PemPem is now on track to move over 1 million tons of fruit through its platform by end of 2026, a remarkable 10x year-over-year jump. After a mid-2025 restructure, PemPem ended 2025 with rapid but controlled growth suggesting this growth is achievable.
The Model
A solution that works and can scale.
Recruit
Bring (geo-tagged) farms, transporters and buyers onto to the digital platform.
Trade
Dynamic prices setup based on demand and quality, paying farmers on pickup.
Logistics
Bundle and transport produce from farm to mills.
Trace
Keep a digital record of transactions that proves deforestation-free origin.
Potential for Impact at Scale
Mulago uses four criteria to gauge potential for exponential impact. The model must be:
This is about impact, and it’s still too early to know. Triangulating farmer plots with pick-up locations is a good start to prove farmer-level traceability. But to stop illegal deforestation, all mills near intact forests must only source from enlisted farmers, or deforesting farmers will still find buyers.
This is about scope. Commodity-driven deforestation accounts for over a quarter of global deforestation. In Indonesia, smallholder farmers informally produce about 50% of palm oil—representing ~3M farmers. Since 96% of farmers operate within 40km of intact forests, most sourcing areas face deforestation risk. Since mills and farmers both profit, the platform could expand to any commodity globally.
This is about use. The current model is complex, as expected for their stage. They test approaches in sprints and apply learnings quickly. Right now, they contract transporters directly to collect, buy and deliver palm fruit. Currently, this isn’t simple and requires a lot of cash up front.
This is about profitability. PemPem has made rapid progress on contribution margin—improving from -75 IDR/kg (subsidized to sellers) to +38 IDR/kg (as of October 2025) over the past two years, tipping them into profitability for every kg of palm oil moved. This is a big milestone.
Pempem are in R&D and gaining impressive traction for their early stage.
Our Take
PemPem's digital platform is gaining impressive traction on a tough problem. Indonesia's 3 million smallholders and $20 billion annual palm trade represent massive potential. In 2025, they reached profitability per kg of fruit delivered, so they're off to the races. Full conservation impact will require 100% mill adoption, which likely will be driven by global demand for verified traceability. Their rapid operational learning gives reason for optimism.
Are you a serious funder and want to learn more?
This is just a snapshot of what we know about the organization. If you're an investor or funder that might send some serious dough their way, we're always delighted to share more. Reach out and we'll connect you with the right person on our team.
*this is not monitored for funding requests.
