Arya.ag, a notable Grain commerce platform, has secured a USD 19.8 million debt commitment from the United States International Development Finance Corporation (DFC). This would be focused towards guaranteeing a debt facility for its agri-commerce subsidiary - Aryatech. It is important to note that Arya.ag has become the first agritech startup to get close to secure two financing rounds in 2024, wherein, it had also secured USD 29 million equity raise back in July.
As per the company’s press release, the acquired funds will drive Arya.ag’s capacity to connect farmers and Farmer Producer Organizations (FPOs) with buyers nationwide. Hence ensuring payment security, transaction transparency, and better market access.
Furthermore, Arya.ag connects sellers and buyers of agricultural products so as to facilitate efficient commerce and reduce waste to benefit the entire market. The company offers an end-to-end solution that builds trust across the agricultural value chain, by integrating warehouse discovery, farmgate-level storage, finance, and market linkages.
Today, the company has been successfully operating across 60 percent of India’s districts, wherein, it manages over 11,000 agri-warehouses and claims to aggregate while storing USD 3 billion worth of grain annually. Adding to this, it also facilitates the disbursement of over USD 1.5 billion in loans to smallholder farmers, FPOs, and other stakeholders.
The company has also reported a positive growth for the fiscal year ending March 2023. Additionally, the company’s gross scale has witnessed an upsurge by 49.48 percent year-on-year to stand at INR 290 crore in FY23. Moreover, its profit has surged 11-fold to reach INR 7.58 crore during the same period. According to the company, its net revenue has also risen to reach INR 360 crore in FY24, with a net profit of INT 17 crore. Having said that, we are yet to see Arya.ag filing its audited annual report for the last fiscal year.
Arya.ag competes with companies like DeHaat, Ninjacart, and Bijak. Following a substantial fundraising boom in 2021 and 2022, agritech startups are now facing challenges in securing venture capital for larger funding rounds. Data compiled by TheKredible indicates that agritech startups have raised approximately USD 170 million across more than 30 deals in 2024 to date.
