- Arya.ag has secured a $19.8 million commitment from the U.S. International Development Finance Corporation (DFC) for its agri-commerce subsidiary, Aryatech, marking a significant milestone as the first agritech startup to approach two financing rounds in 2024.
- The funding will enhance Arya.ag’s ability to connect farmers and farmer producer organizations (FPOs) with buyers, improving payment security, transaction transparency, and market access.
- Operating in 60% of India’s districts, Arya.ag manages over 11,000 agri-warehouses, claims to store $3 billion worth of grain annually, and has facilitated over $1.5 billion in loans to smallholder farmers and FPOs.
- In FY23, Arya.ag reported a 49.48% year-on-year increase in gross scale to ₹290 crore and an 11-fold profit surge to ₹7.58 crore, projecting a net revenue of ₹360 crore for FY24, despite challenges in securing larger venture capital funding.
Grain commerce platform Arya.ag has received a $19.8 million commitment from the United States International Development Finance Corporation (DFC) to back a debt facility for its agri-commerce subsidiary, Aryatech.
This marks a significant milestone, as Arya.ag becomes the first agritech startup to approach two financing rounds in 2024, following a $29 million equity raise in July.
The new funds aim to strengthen Arya.ag’s ability to link farmers and farmer producer organisations (FPOs) with buyers across the country, enhancing payment security, transaction transparency, and market access, according to the company’s press release.
By facilitating efficient commerce and minimising waste, Arya.ag connects sellers and buyers of agricultural products. The platform integrates warehouse discovery, farmgate-level storage, financing, and market linkages, providing a comprehensive solution that fosters trust throughout the agricultural value chain.
Currently active in 60% of India’s districts, Arya.ag oversees over 11,000 agri-warehouses and claims to aggregate and store $3 billion worth of grain annually. The company has also facilitated the disbursement of over $1.5 billion in loans to smallholder farmers, FPOs, and other stakeholders
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In the fiscal year ending March 2023, Arya.ag reported a profit, with gross scale increasing by 49.48% year-on-year to ₹290 crore, and profit surging 11-fold to ₹7.58 crore during the same period. The company anticipates net revenue of ₹360 crore for FY24, with a projected net profit of ₹17 crore. However, it has yet to submit its audited annual report for the previous fiscal year.
Arya.ag competes with other agritech firms like DeHaat, Ninjacart, and Bijak. Following a fundraising surge in 2021 and 2022, agritech startups now face challenges in attracting venture capital for larger funding rounds. Data from TheKredible reveals that agritech startups have raised approximately $170 million across more than 30 deals in 2024 thus far.
