Agritech startup Arya.ag has received a $19.8 million debt commitment from the United States International Development Finance Corporation (DFC), aimed at supporting its subsidiary, Aryatech. This investment positions Arya.ag as the first agritech startup to approach dual funding rounds in 2024, following a previous $29 million equity investment secured in July.
The new capital will enhance Arya.ag’s mission to link farmers and farmer producer organizations (FPOs) with buyers across India, fostering payment security, transaction clarity, and improved market access. Arya.ag’s platform simplifies agricultural trade by connecting sellers and buyers directly, reducing waste, and enhancing efficiency throughout the industry. Its services encompass warehouse discovery, farmgate-level storage, financial support, and market connectivity, building a trustworthy network in the agricultural sector.
Currently, Arya.ag operates in over 60% of India’s districts, managing an extensive network of more than 11,000 warehouses. The company supports grain storage valued at $3 billion annually and facilitates over $1.5 billion in loans to smallholder farmers, FPOs, and other partners in the agriculture supply chain.
In the fiscal year ending March 2023, Arya.ag reported significant financial growth, with a gross revenue increase of 49.48% to Rs 290 crore and an elevenfold profit surge, reaching Rs 7.58 crore. The company’s net revenue for FY24 rose to Rs 360 crore, coupled with a net profit of Rs 17 crore, though its final audited report for FY24 is pending.
In a competitive market, Arya.ag faces industry rivals such as DeHaat, Ninjacart, and Bijak. Despite recent funding difficulties within the agritech sector, Arya.ag’s funding success stands out. As per data from TheKredible, agritech startups have collectively raised around $170 million across 30-plus deals in 2024, highlighting the challenges yet accomplishments within the industry.
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