Agritech startup Arya.ag has received a $19.8 Mn (INR 166.4 Cr) commitment from US International Development Finance Corporation (DFC) to provide a debt facility for its agri-commerce subsidiary Aryatech.
Arya.ag to use $19.8 Mn fund to connect with FPOs
According to INC42, this round will help Arya.ag better connect farmers and Farmer Producer Organisations (FPOs) with buyers across India by offering payment security, ensuring transparent transactions, and improving market access.
Continue Exploring: Tata to introduce “Neu Flash”, targets to expand in Q-commerce sector
Regarding the funding, Prasanna Rao, co-founder and CEO of Arya.ag commented, “This commitment from DFC represents a significant milestone in our mission to transform India’s grain commerce ecosystem. The facility will enable us to connect more farmers and FPOs to buyers much beyond their existing networks creating a more efficient and inclusive agricultural marketplace.”
Arya.ag raises $100 Mn in total
This round comes after a $29 Mn equity raise last quarter. Reportedly, in July they raised $29 Mn in a pre-Series D round. Overall, the startup has raised over $100 Mn in total funding.
Established in 2013, Arya.ag is a grain commerce platform helping farmers sell produce, offering storage, financing, and transparent trade. It operates in 60% of Indian districts with 11,000 agri-warehouses, promoting fair agricultural value chains.
Continue Exploring: Lahori to raise INR 400 Cr, tripling Its valuation
Meanwhile, the startup has three divisions: Arya Collateral, Aryadhan, and Aryatech. Aryatech, launched in 2021, offers an online marketplace for buying and selling food grains. “This transaction aligns with our goal of supporting economic growth and prosperity in communities across India,” said James Polan, DFC’s VP of Health & Agribusiness. The platform grew 77% last year and reported a pre-tax profit of INR 22 Cr in FY24, according to the company.
Looking ahead, Indian agritech startups are set to seize multi-billion-dollar opportunities. An EY report projects a $24 Bn market for these startups by 2025. Since 2014, investors have already poured in over $2.4 Bn, according to Inc42’s analysis.
