Arya.ag, an Indian agritech company providing storage facilities near farms and lending services to hundreds of thousands of farmers, has garnered investor attention and maintained profitability, even as global crop prices continue to decline amid a volatile commodities market.
The latest all-equity Series D funding round from GEF Capital Partners raised $81 million, with more than 70% being primary capital and the remainder from secondary share sales, according to the company.
Globally, agricultural commodity prices are on the decline. The World Bank has warned that risks from extreme weather, rising input costs, trade disruptions, and policy shifts regarding biofuels are impacting agricultural markets. These issues expose businesses to price fluctuations and potential inventory losses. However, Arya.ag claims it is weathering the storm by avoiding direct commodity investments and employing a model designed to cushion against downward price shifts.
Founded in 2013 by former ICICI Bank executives Prasanna Rao, Anand Chandra, and Chattanathan Devarajan, Arya.ag was built on a straightforward idea: empowering farmers to control when and to whom they sell their crops. Based in Noida, the startup provides storage facilities close to farms, enabling farmers to borrow against their stored grain for immediate cash needs. It connects them with a broader range of buyers, including agri-corporations, processors, and millers, helping them avoid the urge to sell right after harvest when prices are typically lower.
Arya.ag operates at scale, distinguishing itself from traditional lenders, banks, and other agribusiness platforms. The startup aggregates and stores around $3 billion worth of grain annually—about 3% of India’s national output—facilitating approximately $1.5 billion in loans each year while maintaining a low rate of bad loans (gross non-performing assets or NPAs) below 0.5% even amid recent price declines.
Arya.ag only lends a fraction of the value of stored grain and closely monitors prices, initiating margin calls when necessary rather than incurring losses, according to Rao. Borrowers have the option to repay a portion of the loan or add more grain as collateral.
“You’re not immune to risks,” Rao told TechCrunch. “But because your lending is completely secured against commodities, it will never happen that the prices will fall by 90%. You already have a margin of 30%, and with your mark to market, you’ve been able to control your NPAs and defaults.”
For the year ending March 2025, Arya.ag reported net revenue of ₹4.5 billion (approximately $50 million), with first-half revenue for the current financial year rising by about 30% from the previous year to ₹3 billion ($33.3 million). Profit after tax reached ₹340 million (around $3.78 million) last year, with a further 39% increase so far this year, according to Rao.
Arya.ag now serves between 850,000 and 900,000 farmers across 60% of India’s districts, operating through a network of about 12,000 agricultural warehouses, all leased from third parties. The company earns revenue from farmers for storage, from banks for originating loans against stored grain, and from buyers for facilitating crop sales through its platform.
Storage is the largest revenue source, contributing about 50–55% of total revenue, while finance accounts for 25–30%, with the rest coming from commerce, Rao noted.
Arya.ag disburses more than ₹110 billion (around $1.2 billion) in loans to farmers annually. Of that, ₹25 billion to ₹30 billion (approximately $278 million–$333 million) is funded from its own balance sheet via its non-banking finance arm, Rao stated, with the remainder originated from partner banks.
The startup offers loans at interest rates of about 12.5% to 12.8%, significantly lower than the 24% to 36% typically charged by commission agents, according to Rao, though slightly higher than bank lending rates of around 11% to 12%. He added that banks usually do not lend in small, local markets near farming areas that Arya serves, where loan amounts are much smaller compared to typical bank loans and borrowers are often far from formal branches.
Loans can be approved in under five minutes, with disbursements almost entirely handled digitally, Rao said.
Technology is crucial to how Arya.ag manages risk and scale. The startup employs AI for assessing grain quality for lending decisions, utilizes satellite data to monitor crop stress before harvest, and employs sensor-enabled storage bags that allow farmers to store grain longer, even in villages lacking formal warehouses.
Arya.ag intends to use the new funds to further scale its technology deployments, including expanding smart farm centers and deploying additional digital tools closer to farms. Part of the investment will also enhance the startup’s blockchain-based system that digitally tracks stored grain, allowing for monitoring during lending and trade transactions, alongside ongoing investments in storage and credit infrastructure.
With this recent influx of capital and improving profitability, Arya.ag aims to be ready for an IPO within the next 18 to 20 months, Rao said.
Looking beyond India, Arya.ag plans selective expansions using a software-driven model, with some of its technology already implemented in parts of Southeast Asia and Africa. The startup currently employs over 1,200 full-time staff members.
Avendus advised Arya.ag in this latest financial round.
