Even when global prices fall, India’s Arya.ag attracts investors – and remains profitable

Arya.agAn Indian agritech company that provides near-farm storage and lending services to thousands of farmers has attracted interest from investors and remains profitable even as global prices remain low in volatile commodity markets.

Investor interest has reached the most recent Series D round from GEF Capital Partners, totaling $81 million, of which more than 70% was initial funding and some secondary sales, according to the company.

All around the world, prices of agricultural products are falling. Risks from adverse weather conditions, rising commodity prices, trade disruptions, and changes in oil policy continue to weigh on agricultural markets, the World Bank says. he warned. This leaves businesses exposed to price fluctuations and loss of inventory. Despite this, Arya.ag says it is running on the biggest problem by avoiding direct betting and using a model it says helps absorb shocks from low prices.

Founded in 2013 by former ICICI Bank executives Prasanna Rao, Anand Chandra, and Chattanathan Devarajan, Arya.ag is built around a simple idea: to give farmers control over time and who sells their crops. The Noida-based start-up offers storage facilities close to farms where they allow farmers to borrow from grain storage facilities to meet financing needs and connect them with a wide range of buyers – from small businesses to processors and millers – helping them avoid being forced to sell right after harvest, when prices are at their weakest.

The company operates on a large scale, which differentiates Arya.ag from traditional lenders, banks, and other business platforms. The startup says it collects and stores about $3 billion of seed each year – about 3% of the country’s output – and supports about $1.5 billion in loans annually, keeping its bad loans (known as non-performing assets, or NPAs) below 0.5% despite recent low rates.

Arya.ag lends only a portion of the value of the stored seed and tracks prices closely, triggering margin calls when needed instead of wasting them, Rao said. Creditors may respond by repaying part of the loan or adding grain as collateral.

“You can’t risk it,” Rao told TechCrunch. “But because your loan is secured against the assets you sell, it is unlikely that rates will drop by 90%. You already have a margin of 30%, and because of your sales, you have been able to control your NPAs and non-payments.”

In the year ended March 2025, Arya.ag generated a total revenue of ₹4.5 billion (about $50 million), which in the first quarter of the fiscal year is up about 30% from the previous year to ₹33.3 billion (about $33.3 million). Profit after tax reached ₹ 340 million (about $3.78 million) last year, and is up 39% so far this year, Rao said.

Arya.ag says it now reaches between 850,000 and 900,000 farmers in 60% of India’s states, operating through about 12,000 agricultural warehouses, all leased from third parties. The startup gets money from farmers for storage, from banks for loans for stored seeds, and from consumers to help sell seeds through its platform.

Storage remains the largest contributor, accounting for around 50-55% of total revenue, while investment contributes 25-30% and the rest comes from sales, Rao said.

Arya.ag provides more than ₹110 billion (about $1.2 billion) in loans to farmers every year through its platform. Between ₹ 25 billion and ₹ 30 billion (about $278 million-$333 million) of that came from its website with non-bank funds, Rao said, and the rest came from partner banks.

Arya.ag loans have an interest rate of about 12.5% ​​to 12.8%, lower than the 24% to 36% charged by commission agents, Rao said, though higher than bank lenders’ average of 11% to 12%. He said banks often don’t lend in small, local markets near the agricultural areas that Arya operates, where loan sizes are a fraction of bank tickets and borrowers are often far from regular branches.

The startup approves loans in less than five minutes and returns are processed digitally, Rao said.

Technology plays a key role in how Arya.ag manages risk and growth. The startup uses AI to analyze grain yield decisions, satellite data to track crop stress before harvest, and airtight storage bags, which allow farmers to store crops for longer even in villages without warehouses.

Arya.ag plans to use the new headquarters to expand its technology services, including expanding the smart farm environment and placing more digital devices near farms. Part of the money, Rao said, will also go to encourage blockchain startups to explain the system to digital railways to store grain, allowing grain to be used as collateral or sold on a platform managed through lending and trading, as well as the continuation of savings and credit infrastructure.

With the recent infusion of capital and improved profitability, Arya.ag aims to be IPO ready in the next 18 to 20 months, Rao said.

Beyond India, Arya.ag plans to expand selectively through a software-based platform, with some of its technology already deployed in Southeast Asia and Africa. The startup has more than 1,200 full-time employees.

Avendus advised Arya.ag on the new investment.