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Even as global crop prices fall, India’s Arya.ag is attracting investors — andstaying profitable
India's Arya.ag, an agritech company providing storage and lending services to farmers, secured $81 million in a Series D round despite falling global crop prices. The company, founded in 2013, remains profitable by avoiding commodity bets and focusing on securing loans against stored grain. As demand for agricultural financing grows, Arya.ag is set to enhance its tech and expand operations, with plans for an IPO in 18-20 months.
Key points
- Arya.ag attracted $81 million in new funding from GEF Capital Partners.
- Global crop prices are declining due to extreme weather, input costs, and policy shifts.
- The company offers near-farm storage and allows farmers to borrow against stored grain.
- Arya.ag operates 12,000 warehouses, serving around 850,000 to 900,000 farmers.
- It maintains a low bad loan rate of less than 0.5% despite market volatility.
- In FY 2025, Arya.ag reported revenues of ₹4.5 billion (approx. $50 million) and a profit increase of 39%.
Why it matters
- Other agritech startups are seeing growth as the demand for farmer financing rises amid widespread market challenges.
- The shift towards tech-enabled agriculture aligns with global trends focusing on sustainability and efficiency in food production by 2025.
- Blockchain implementations in agriculture for traceability are becoming increasingly relevant, connecting to Arya.ag's plans for strengthening its digital tracking systems.
Despite global agricultural challenges, Arya.ag’s strategic focus on technology, risk management, and farmer empowerment not only secures its profitability but positions it for future growth and an anticipated IPO, reflecting broader trends in the agritech sector.