Arya.ag Receives $19.8 Mn Commitment From DFC
by Pooja Yadav · Inc42SUMMARY
- This round will enhance Arya.ag's ability to connect farmers and Farmer Producer Organisations (FPOs) with buyers across the country by providing payment security, ensuring transaction transparency, and improving access to markets
- This round follows a $29 Mn equity raise last quarter. In July, Inc42 reported that the agritech startup is raising $29 Mn in a pre-Series D round
- Founded in 2013 by Prasanna Rao, Anand Chandra, and Chattanathan Devarajan, Arya.ag is a grain commerce platform, which empowers farmers and their organisations to choose when and to whom to sell their produce after harvest
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Agritech startup Arya.ag has secured a commitment of $19.8 Mn (INR 166.4 Cr) from US International Development Finance Corporation (DFC) to extend a debt facility for its agri commerce subsidiary Aryatech.
As per the company, this round will enhance Arya.ag’s ability to connect farmers and Farmer Producer Organisations (FPOs) with buyers across the country by providing payment security, ensuring transaction transparency, and improving access to markets.
Prasanna Rao, cofounder and CEO of Arya.ag said, “This commitment from DFC represents a significant milestone in our mission to transform India’s grain commerce ecosystem. The facility will enable us to connect more farmers and FPOs to buyers much beyond their existing networks creating a more efficient and inclusive agricultural marketplace.”
This round follows a $29 Mn equity raise last quarter. In July, Inc42 reported that the agritech startup is raising $29 Mn in a pre-Series D round.
Overall, Arya.ag has raised a total funding of over $100 Mn till date.
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Founded in 2013 by Prasanna Rao, Anand Chandra, and Chattanathan Devarajan, Arya.ag is a grain commerce platform, which empowers farmers and their organisations to choose when and to whom to sell their produce after harvest. The platform offers access to farmgate-level storage, financing, and transparent commerce, addressing trust issues in grain trading. Currently, the startup claims to be operational in 60% of Indian districts with over 11,000 agri-warehouses. The startup aims to create equitable value chains in agriculture, promoting inclusive growth and transparency.
Arya.ag has three verticals – Arya Collateral, Aryadhan, and Aryatech. It launched Aryatech in 2021 to offer online marketplace solutions to sell and purchase food grains.
“This transaction aligns with our goal of supporting economic growth and prosperity in communities across India,” said James Polan, DFC’s vice president of Health & Agribusiness.
With a growth of 77% over the last year, the platform reported a profit before tax of INR 22 Cr in FY 24, as per the company.
It is important to note that Indian agritech startups are poised to tap into multi-billion-dollar opportunities. According to an EY report, these startups are projected to face a total market opportunity of $24 Bn by 2025. This potential has not gone unnoticed, with Indian and global investors pouring in over $2.4 Bn since 2014, as highlighted by Inc42’s analysis.