Agritech and lending platform Arya.ag has successfully closed a $30 million (Rs 259 crore) debt facility with HSBC India with partial guarantees from GuarantCo. This financing can further support farmers, Farmer Producer Organizations (FPOs), and small agribusinesses to access financing i.e. Arya.ag is geared towards enhancing post-harvest liquidity, reducing farm distress sales, and enhancing farmer cash flow.
The company, which is already profitable, expects significant revenue growth and is planning an IPO in 2027. Additionally, Arya.ag has secured $19.8 million from the US International Finance Corporation (DFC) to enhance its platform and expand its financial services for Indian farmers.
What is Arya.ag?
Arya.ag is an agritech and lending platform that helps farmers, Farmer Producer Organizations (FPOs), and agri-businesses with storage, finance, and commerce solutions. It provides post-harvest liquidity, allowing farmers to store their produce and sell it at better prices rather than making distressed sales.
The platform connects farmers with buyers, offers financing through warehouse receipt loans, and integrates digital tools to improve transaction security and transparency. Arya.ag is one of the few profitable agritech startups in India and has secured funding from investors like HSBC India and the US International Finance Corporation (DFC).
Why is This Funding Significant?
This funding is significant as it will provide crucial financial support to farmers, Farmer Producer Organizations (FPOs), and agri-businesses, helping them access liquidity after harvest. The $30 million debt from HSBC India and the $19.8 million from the US International Finance Corporation (DFC) will enable Arya.ag to reduce distress sales by allowing farmers to store their produce until prices improve, potentially increasing their earnings by 20-30%.
Additionally, the funds will help Arya.ag expand its storage infrastructure, enhance lending services, and strengthen its digital platform to improve payment security and transaction transparency. As one of the few profitable agritech startups, Arya.ag is also focusing on business growth, aiming to double its revenue in FY 2024-25 to ₹38 crore while preparing for an IPO in 2027.
How Will the Funds Be Used?
The funds will be used to enhance Arya.ag’s financial and operational capabilities in multiple ways. A significant portion will go toward providing post-harvest liquidity to farmers, Farmer Producer Organizations (FPOs), and small agri-enterprises, allowing them to store their produce instead of making distress sales at low prices.
By offering warehouse receipt financing, Arya.ag will bridge payment gaps between farmers and buyers, ensuring better returns. Additionally, the startup plans to expand its storage infrastructure, including experimenting with perishables like jaggery. The funds will also strengthen Arya.ag’s digital platform, improving payment security, transaction transparency, and financial accessibility for farmers.
Founders’ Perspective
The founders of Arya.ag see this funding as a crucial step in empowering farmers and improving India’s agricultural sector. Prasanna Rao, Co-founder of Arya.ag emphasized that the funds will help reduce distress sales by enabling farmers to store their produce until prices improve.
He stated, “This allows farmers, FPOs, and agri-enterprises to avoid distress sales immediately post-harvest when prices are at their lowest, by storing commodities until off-season when prices appreciate to often generate 20-30 per cent higher returns.”
Meanwhile, Anand Chandra, Co-founder and Executive Director of Arya.ag highlighted how the DFC funding will boost the platform’s trade operations. He explained, “This funding will allow us to add more services for farmers, expanding our reach and resources. We’re also looking at raising additional debt from other financial institutions to extend financing options for farmers and FPOs.”
Chandra also stressed that increasing trade and financial options will be key to empowering small-scale farmers and driving Arya.ag’s growth in India’s agritech ecosystem.
Key Takeaways
- Major Financial Boost – Arya.ag secured a $30 million (₹259 crore) debt facility from HSBC India, with partial guarantees from GuarantCo, along with a $19.8 million investment from the US International Finance Corporation (DFC).
- Empowering Farmers and FPOs – The funds will help provide post-harvest liquidity, enabling farmers and Farmer Producer Organizations (FPOs) to store their produce and sell at better prices, avoiding distress sales.
- Expansion of Storage and Lending Services – Arya.ag will increase storage infrastructure, offer warehouse receipt financing, and bridge payment gaps between farmers and buyers.
- Strengthening Digital Agri-Commerce – The startup plans to enhance its platform to improve payment security, transaction transparency, and financial accessibility for farmers.
- Strong Growth & IPO Plans – Arya.ag is already profitable, expects 2x revenue growth in FY 2024-25 (₹38 crore), and is targeting a public listing (IPO) in 2027.
Conclusion
Arya.ag’s recent funding marks a significant step in its journey to revolutionize India’s agritech sector. With a strong focus on financial inclusion, storage expansion, and digital transformation, the company aims to empower farmers and FPOs with better market access and higher returns.
As it continues to scale its operations and enhance its lending services, Arya.ag is targeting substantial revenue growth, with plans to reach ₹90-100 crore in the next two years. Looking ahead, the startup is also preparing for an IPO in 2027, positioning itself as a key player in the agritech and fintech ecosystem in India.
CTA – More Storage, Better Prices – The Future of Arya.ag Unfolds!
