Even as global crop prices fall, Indian company Arya.ag attracts investors and remains profitable

Arya.agan Indian agritech company offering near-farm storage facilities and providing loan services to hundreds of thousands of farmers, has attracted investor interest and remained profitable even as global crop prices continue to fall in a volatile commodity market.

Investor interest came to fruition in GEF Capital Partners’ latest all-stock Series D round, totaling $81 million, more than 70% of which was primary capital and the remainder secondary stock sales, according to the company.

Globally, prices of agricultural raw materials fall. Risks from extreme weather, input costs, trade disruptions and biofuel policy changes continue to weigh on agricultural markets, the World Bank said. warned. This exposes businesses to price fluctuations and inventory losses. Still, Arya.ag says it’s weathering the worst of this strain by avoiding direct bets on commodities and using a model that it says helps absorb shocks from downward price changes.

Founded in 2013 by former ICICI Bank executives Prasanna Rao, Anand Chandra and Chattanathan Devarajan, Arya.ag revolves around a simple idea: giving farmers more control over when and to whom they sell their crops. The Noida-based startup offers near-farm storage while allowing farmers to borrow against stored grains to meet their immediate liquidity needs and connecting them with a wider pool of buyers – from farm businesses to processors and millers – helping them avoid the pressure to sell right after harvest, when prices are often lowest.

The company operates at scale, which sets Arya.ag apart from traditional lenders, banks and other agribusiness platforms. The startup says it aggregates and stores about $3 billion worth of grain each year – or about 3% of national production – and facilitates about $1.5 billion in loans annually, while keeping its bad debt ratio (known as gross non-performing assets, or NPAs) below 0.5% despite the recent price decline.

Arya.ag lends only a portion of the value of stored grain and monitors prices closely, triggering margin calls when necessary rather than incurring losses itself, Rao said. Borrowers can respond by repaying part of the loan or adding more grain as collateral.

“You are not immune to risk,” Rao told TechCrunch. “But since your loans are fully collateralized on commodities, it will never happen that prices fall by 90%. You already have a margin of 30% and with your mark-to-market valuation, you have been able to control your NPAs and defaults.”

In the financial year ended March 2025, Arya.ag generated net revenue of ₹4.5 billion (approximately $50 million), with revenue for the first half of the current financial year increasing by approximately 30% from the previous year to ₹3 billion ($33.3 million). Profit after tax stood at ₹340 million (around $3.78 million) last year and has further increased by 39% so far this year, Rao said.

Arya.ag says it now serves between 850,000 and 900,000 farmers in 60% of India’s districts, operating through a network of around 12,000 agricultural warehouses, all leased to third parties. The startup generates revenue from farmers for storage, from banks for providing loans on stored grain, and from buyers to facilitate crop sales through its platform.

Storage remains the largest contributor, accounting for around 50-55 per cent of total revenue, while finance contributes 25-30 per cent and the rest comes from trading, Rao said.

Arya.ag distributes over ₹110 billion (approximately $1.2 billion) in loans to farmers every year through its platform. Between ₹25 billion and ₹30 billion (about $278 million to $333 million) comes from its own balance sheet through its non-bank financial arm, Rao said, with the rest coming from partner banks.

Arya.ag’s loans carry interest rates of about 12.5% ​​to 12.8%, much lower than the 24% to 36% typically charged by commission agents, Rao said, although higher than bank loan rates of about 11% to 12%. He added that banks generally do not lend in small local markets close to the agricultural areas served by Arya, where loan amounts are only a fraction of typical bank tickets and borrowers are often located far from formal branches.

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

Technology plays a central role in how Arya.ag manages risk and scale. The startup uses AI to assess grain quality to make lending decisions, satellite data to track crop stress before harvest, and airtight storage bags equipped with sensors that allow farmers to store grains for long periods, even in villages without formal warehouses.

Arya.ag plans to use the new capital to further expand its technology deployments, including expanding smart agriculture centers and deploying more digital tools closer to farms. Part of the investment, Rao said, will also be used to strengthen the startup’s blockchain-based system that digitally tracks stored grains, enabling monitoring of crops used as collateral or sold through the platform during lending and commercial transactions, alongside continued investment in storage and credit infrastructure.

With the latest capital infusion and improved profitability, Arya.ag aims to be ready for an IPO in the next 18-20 months, Rao said.

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

Avendus advised Arya.ag for the new financial round.