Arya.ag, a leading agritech company based in India, has caught the attention of investors due to its innovative approach in providing storage facilities near farms and offering lending services to hundreds of thousands of farmers. Despite the challenges posed by the global crop prices falling in a volatile commodities market, Arya.ag has remained profitable and continues to attract significant investment.
The recent Series D funding round from GEF Capital Partners, amounting to $81 million, with over 70% as primary capital and the rest from secondary share sales, showcases the confidence investors have in Arya.ag’s business model.
In a time where agricultural commodity prices are on the decline globally, Arya.ag has managed to navigate the risks associated with extreme weather, input costs, trade disruptions, and policy shifts in biofuels. By avoiding direct commodity bets and implementing a resilient model, Arya.ag has been able to absorb shocks from downward pricing shifts effectively.
Founded in 2013 by former ICICI Bank executives Prasanna Rao, Anand Chandra, and Chattanathan Devarajan, Arya.ag focuses on empowering farmers by giving them control over when and to whom they sell their crops. By providing storage facilities near farms, farmers can borrow against their warehoused grain to meet immediate cash needs and connect with a wide range of buyers, including agri-corporations, processors, and millers. This approach helps farmers avoid selling their produce at low prices right after harvest.
Arya.ag operates at scale, setting it apart from traditional lenders and agribusiness platforms. The company stores around $3 billion worth of grain annually, equivalent to roughly 3% of the national output, and facilitates approximately $1.5 billion in loans each year. Despite the recent price drop, Arya.ag has managed to keep its rate of bad loans below 0.5%.
The company’s lending strategy involves lending only a portion of the value of stored grain and closely monitoring prices to trigger margin calls when necessary. Borrowers have the option to repay part of the loan or add more grain as collateral, ensuring a secure lending process.
Arya.ag’s financial performance has been robust, with net revenue reaching ₹4.5 billion (around $50 million) in the year ended March 2025. The company’s revenue in the current financial year has increased by 30% compared to the previous year, with a profit after tax of ₹340 million (about $3.78 million) last year. Arya.ag continues to see growth, with a 39% increase in profit this year.
The company has a significant reach, serving between 850,000 and 900,000 farmers across 60% of India’s districts through a network of 12,000 agricultural warehouses leased from third parties. Arya.ag generates revenue from farmers for storage, banks for originating loans, and buyers for facilitating crop sales on its platform.
Storage remains the primary revenue contributor for Arya.ag, accounting for approximately 50–55% of total revenue, while finance contributes 25–30%, with the rest coming from commerce. The company disburses over ₹110 billion (about $1.2 billion) in loans to farmers annually, with a significant portion originating from its own balance sheet via its non-banking finance arm.
Arya.ag offers competitive interest rates of about 12.5% to 12.8%, lower than the rates charged by commission agents but slightly higher than bank lending rates. The company’s quick loan approval process and digital disbursements ensure a seamless experience for farmers.
Technology plays a crucial role in Arya.ag’s operations, enabling the company to manage risk and scale efficiently. The startup utilizes AI for lending decisions, satellite data for crop monitoring, and sensor-enabled storage bags for extended grain storage in remote areas.
With the recent funding, Arya.ag plans to expand its tech deployments, enhance its blockchain-based system for tracking stored grain, and strengthen storage and credit infrastructure. The company aims to be IPO-ready in the next 18 to 20 months, backed by its improving profitability and strategic growth plans.
Beyond India, Arya.ag intends to expand selectively through a software-led model, with technology already deployed in parts of Southeast Asia and Africa. The company’s workforce of over 1,200 full-time employees is dedicated to driving innovation and growth in the agritech sector.
In conclusion, Arya.ag’s success in the challenging agricultural market is a testament to its innovative approach and commitment to empowering farmers. With a strong financial performance, expanding reach, and strategic investments in technology, Arya.ag is poised for continued growth and aims to make a significant impact on the agricultural industry globally.