Indian agritech pioneer Arya.ag has successfully secured an $81 million all-equity Series D funding round led by GEF Capital Partners, demonstrating remarkable investor confidence and sustained profitability. This achievement comes despite a volatile global commodities market characterized by declining crop prices. Arya.ag’s innovative model provides crucial farm-gate storage and lending services to hundreds of thousands of farmers, helping them navigate market fluctuations.
Globally, agricultural commodity prices are experiencing a downturn, exacerbated by risks such as extreme weather, rising input costs, trade disruptions, and shifts in biofuel policies, as warned by the World Bank. These factors expose businesses to significant price swings and potential inventory losses. However, Arya.ag asserts it is effectively mitigating these pressures by avoiding direct commodity speculation and employing a business model designed to absorb the impact of falling prices.
Founded in 2013 by former ICICI Bank executives Prasanna Rao, Anand Chandra, and Chattanathan Devarajan, Noida-based Arya.ag was built on a straightforward principle: empowering farmers with greater control over their crop sales. The startup offers convenient storage facilities near farms, enabling farmers to secure loans against their warehoused grain for immediate cash flow. This system also connects them to a diverse network of buyers, including agri-corporations, processors, and millers, thereby alleviating the pressure to sell immediately post-harvest when prices are typically at their lowest.
Operating at a significant scale, Arya.ag distinguishes itself from conventional lenders, banks, and other agribusiness platforms. The company reports aggregating and storing approximately $3 billion worth of grain annually, representing about 3% of India's national output. It also facilitates around $1.5 billion in loans each year, maintaining a remarkably low rate of bad loans (gross non-performing assets, or NPAs) below 0.5%, even amidst recent price declines.
Prasanna Rao, Co-founder and CEO of Arya.ag, explained that the company's lending strategy involves advancing only a portion of the stored grain's value, coupled with rigorous price tracking. This allows the company to issue margin calls when necessary, rather than absorbing losses directly. Borrowers can then respond by partially repaying the loan or by providing additional 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 fiscal year ending March 2025, Arya.ag reported net revenue of ₹4.5 billion (approximately $50 million). Revenue for the first half of the current financial year saw a 30% increase year-over-year, reaching ₹3 billion ($33.3 million). Profit after tax for the previous year was ₹340 million (about $3.78 million), with a further 39% rise recorded so far this year, according to Rao.
Arya.ag currently serves between 850,000 and 900,000 farmers across 60% of India’s districts. The company operates through an extensive network of approximately 12,000 leased agricultural warehouses. Its revenue streams are diversified: farmers pay for storage, banks pay for loan origination against warehoused grain, and buyers pay for facilitated crop sales via the platform. Storage accounts for the largest share, contributing 50–55% of total revenue, followed by finance at 25–30%, with the remainder from commerce, Rao detailed.
Annually, Arya.ag disburses over ₹110 billion (approximately $1.2 billion) in loans to farmers through its platform. Of this, ₹25 billion to ₹30 billion (roughly $278 million–$333 million) is funded directly from its non-banking finance arm, with the remaining loans originated for partner banks. Arya.ag’s interest rates, ranging from 12.5% to 12.8%, are significantly lower than the 24-36% typically charged by commission agents. While slightly higher than traditional bank rates (around 11-12%), Rao noted that banks often do not serve the small, localized markets near farming areas where Arya.ag operates, due to smaller loan sizes and borrowers being distant from formal branches. The startup prides itself on approving loans in under five minutes, with disbursements handled almost entirely digitally.
Technology is fundamental to Arya.ag’s risk management and scalability. The startup leverages AI for assessing grain quality in lending decisions, utilizes satellite data to monitor crop stress pre-harvest, and employs airtight, sensor-enabled storage bags. These innovative bags enable farmers to store grain for extended periods, even in remote villages lacking traditional warehousing infrastructure.
The newly acquired capital will fuel Arya.ag’s further technological expansion, including scaling smart farm centers and deploying more digital tools directly to farms. Rao also indicated that a portion of the investment would bolster the startup’s blockchain-based system, which digitally tracks stored grain, ensuring transparency and traceability for crops used as collateral or sold through the platform across all lending and trade transactions. This will be complemented by ongoing investments in storage and credit infrastructure. Bolstered by this capital infusion and enhanced profitability, Arya.ag aims to be IPO-ready within the next 18 to 20 months.
Beyond its domestic market, Arya.ag plans selective international expansion using a software-led model, with its technology already being deployed in parts of Southeast Asia and Africa. The company currently employs over 1,200 full-time staff. Avendus provided advisory services for this latest funding round.
