India’s Arya.ag Thrives with Investors Despite Falling Crop Prices
▼ Summary
– Arya.ag, an Indian agritech company, has raised $81 million in a Series D funding round led by GEF Capital Partners, remaining profitable despite falling global crop prices.
– The company’s core model provides farmers with storage near their farms and allows them to secure loans using their stored grain as collateral, helping them avoid selling immediately post-harvest when prices are low.
– It operates at a large scale, storing about $3 billion worth of grain annually (roughly 3% of India’s output) and facilitating around $1.5 billion in loans while maintaining a bad loan rate below 0.5%.
– Arya.ag manages risk by lending only a portion of the grain’s value, closely tracking prices, and using technology like AI and satellite data for quality assessment and monitoring.
– The company plans to use the new capital to scale its technology, strengthen its blockchain tracking system, and aims to be ready for an IPO within the next 18 to 20 months.
In a challenging global market where agricultural commodity prices are declining, one Indian agritech firm is demonstrating remarkable resilience. Arya.ag has successfully secured $81 million in a Series D funding round led by GEF Capital Partners, proving that investor confidence remains strong even during sector-wide volatility. The company’s unique model, which avoids direct commodity speculation, is credited for its continued profitability amidst pressures from weather extremes, shifting trade policies, and fluctuating input costs.
The core of Arya.ag’s business is empowering farmers with greater control over their harvests. Founded by former ICICI Bank executives Prasanna Rao, Anand Chandra, and Chattanathan Devarajan, the company provides storage facilities near farms. This allows farmers to store their grain and use it as collateral for loans, addressing immediate cash needs without forcing a sale during the post-harvest period when prices are typically at their lowest. The platform also connects these farmers with a broad network of buyers, including large agri-corporations, processors, and millers.
Operating at a significant scale, Arya.ag aggregates and stores grain worth approximately $3 billion annually, which represents about 3% of India’s total output. The company facilitates around $1.5 billion in loans each year while maintaining an impressively low rate of bad loans, with gross non-performing assets staying below 0.5%. This stability is achieved through a cautious lending approach; the company only advances a portion of the stored grain’s value and employs strict price monitoring. This system triggers margin calls if needed, protecting the lender from severe losses. Borrowers can meet these calls by repaying part of the loan or pledging additional grain.
Financially, the company is on a strong growth trajectory. For the year ending March 2025, it reported net revenue of roughly $50 million. Revenue for the first half of the current fiscal year showed a 30% increase compared to the same period last year, reaching about $33.3 million. Profit after tax has also risen sharply, growing 39% so far this year after reaching $3.78 million last year.
Arya.ag’s services now reach between 850,000 and 900,000 farmers across 60% of India’s districts, utilizing a network of about 12,000 leased warehouses. Revenue streams are diversified: storage services contribute 50–55% of total income, financing accounts for 25–30%, and the remainder comes from facilitating commerce on its platform. The company disburses over $1.2 billion in loans yearly, with a portion funded from its own non-banking finance arm and the rest originated for partner banks.
The loans offered through Arya.ag carry interest rates of 12.5% to 12.8%, which is significantly lower than the 24% to 36% typically charged by local commission agents. While slightly higher than standard bank rates, these loans fill a critical gap, as traditional banks often do not operate in the small, localized markets where Arya.ag’s farmers are located. The startup’s digital-first approach enables loan approvals in under five minutes with largely digital disbursements.
Technology is the backbone of its risk management and operational scale. The company leverages AI for grain quality assessment, satellite data to monitor crop health, and specialized sensor-enabled storage bags that allow for extended grain preservation even in areas without formal warehouse infrastructure.
The new capital will fuel further technological expansion, including the development of smart farm centers and more digital tools deployed close to farmers. Investments will also enhance its blockchain-based system for digitally tracking grain across lending and trade transactions. With this funding and its improving financials, Arya.ag is targeting readiness for an initial public offering within the next 18 to 20 months.
Beyond its domestic success, the company is exploring selective international expansion through a software-focused model, with its technology already being used in parts of Southeast Asia and Africa. Arya.ag employs over 1,200 people full-time. The financial advisory firm Avendus assisted with this latest funding round.
(Source: TechCrunch)
