In a major development for India’s agrotech ecosystem, Arya.ag, a pioneering grain commerce platform, has secured a $19.8 million investment from the US International Development Finance Corporation (DFC).
The funding will be directed toward expanding the operations of Aryatech, Arya.ag’s agro-commerce subsidiary, by providing a debt facility aimed at bridging Indian farmers and Farmer Producer Organizations (FPOs) with a wider market of buyers across the country. The initiative aims to bolster payment security, enhance transaction transparency, and improve market accessibility, particularly for smallholder farmers and underserved agricultural communities.
“This commitment 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 beyond their existing networks, creating a more efficient and inclusive agricultural marketplace. This aligns perfectly with our proven business model that has already demonstrated profitability while driving meaningful impact across the sector.”
Founded in 2013, Arya.ag has grown into a robust agro-commerce platform that integrates key services across the agricultural value chain. The platform assists with warehouse discovery, farmgate-level storage, financing solutions, and market linkage services to streamline the journey from field to market.
Building on Recent Investments to Enhance Agro-Commerce Capabilities
This latest funding commitment follows Arya.ag’s recent $29 million equity raise, dedicated to scaling up its transaction capabilities, broadening market access, and reinforcing payment security for farmers and Farmer Producer Organizations (FPOs) nationwide.
With a network of over 12,000 warehouses covering 60% of India’s districts, Arya.ag leverages advanced technologies, including computer vision, IoT, and blockchain, to optimize commodity storage and reduce risks. This robust tech stack enhances supply chain efficiency, providing secure, real-time insights for both farmers and buyers.
“DFC is pleased to support AryaTech in expanding its growing agri-tech platform connecting small farmers and farmer producer organisations to buyers in underserved regions of India. This transaction aligns with our goal of supporting economic growth and prosperity in communities across India.”
Financial Growth and Future Prospects
Arya.ag’s impressive financial performance further strengthens its leadership in the agrotech space. For the fiscal year ending March 2023, the company achieved a remarkable 49.48% year-on-year growth, reaching a gross scale of ₹290 crore. Its profitability surged significantly, with net profits climbing 11-fold to ₹7.58 crore.
Looking forward, Arya.ag is positioned for sustained growth in India’s evolving agricultural sector. With a solid financial foundation, innovative technology platform, and steadfast commitment to supporting farmers, Arya.ag remains a pivotal player poised to drive transformative change in agrotech.
Leveraging Technology To Addresses Common Challenges
With an advanced technology stack integrating computer vision, IoT, and blockchain, Arya.ag not only digitizes and secures the commodity storage process but also provides real-time, data-driven insights for all parties involved. This year, the platform achieved a significant milestone by reporting a profit before tax of ₹22 crore for FY24, underscoring its success in driving efficiencies and generating value for stakeholders.
Read more: Arya.ag: The Agritech Startup Revolutionizing Indian Agriculture with AI and Digital Solutions
As mentioned before Arya.ag’s reach, facilitated by over 12,000 warehouses in 60% of India’s districts, enables farmers and FPOs to access secure, transparent, and scalable market solutions. This development sets a new benchmark for the digital transformation of Indian agriculture, benefiting millions of smallholder farmers and fostering greater economic security across rural communities.
This infusion of capital from the DFC will bolster Arya.ag’s commitment to building a cohesive agricultural ecosystem, promoting sustainable growth, and addressing rural financial inclusion—a critical priority in India’s agricultural sector. Through this investment and continued expansion, Arya.ag is not only creating a more equitable agricultural marketplace but is also positioning itself as a catalyst for long-term transformation in Indian agrotech.
