The recent $19.8 million debt commitment of Arya.ag from the U.S. International Development Finance Corporation (DFC) is a signal of growing international confidence in India’s agritech sector. Its success highlights the demand for innovative agricultural solutions and also highlights the critical role that financial backing plays in strengthening resilient supply chains.
This is Arya.ag’s second major funding success this year after a $29 million equity raise in July. The company is now positioned to fortify its end-to-end grain commerce platform that connects farmers and farmer producer organizations (FPOs) with a diverse market of buyers. Appeal of the platform lies in its promise of transparency, payment security and greater access to markets.
It is currently operating in more than 60% of India’s districts equipped with a network of 11,000 warehouses. Arya.ag manages a staggering $3 billion in grain annually and facilitates more than $1.5 billion in loans. The impact is more than financial and demonstrates a vision for a more efficient as well as inclusive agricultural economy. The results of Arya.ag reflect viability of the model and witnessed a 49.5% year-on-year growth in scale for the fiscal year ending in March 2023.
The timing of DFC support is significant as the Indian agritech sector is witnessing a surge in capital inflows in 2021 and 2022. The value of Arya.ag platform and its contribution to food security, rural livelihoods and financial inclusion are unmistakable. The funding is a financial leg-up and also an endorsement of approach to digitizing and democratizing the agricultural value chain.
The journey of Arya.ag embodies a promising future where technology drives productivity and prosperity for India’s farmers.
