Arya.ag, India’s largest integrated grain trading platform, said it closed its Series C funding round, after raising $60 million in equity and debt. The seed round was led by Asia Impact SA, Lightrock India and Quona Capital. The agritech platform has also raised debt financing from the US International Development Finance Corporation (DFC), among others. The company was valued at $300 million this funding round, which is a 5x jump from its previous valuation.
Arya.ag connects sellers and buyers of agricultural products, offering complete assurance on quantity, quality and payments. The platform eliminates distress sales of farmers’ produce by enabling on-farm storage and transparent financing options, giving farmers the freedom to know when and to whom to sell. With visibility to over 10,000 raw material stocking points across the country, Arya ensures year-round supply to SMB and enterprise buyers with built-in financing options.
“We were able to digitize nearly 10,000 agricultural warehouses across the country, spread across 21 states. We provide digital identity to around Rs 12,000 crore of goods that are in these warehouses. You activate around Rs 5,000 crore of funding against these products which are in the warehouses. We are at a pace to sell nearly Rs 1,500 crore of products on the platform,” Arya co-founder and CEO Prasanna Rao said.
“It is the expansion of these deliverables where the current funding round would be used. also our reach from around 55% of Indian districts to around 75% of districts in the next 12 months.We are also working to further integrate technology to perform these transactions, such as digitizing storage, adding inbuilt fintech layers, and then the seamless activation of the trading and commodities market,” Rao said.
Arya’s founders—Chattanathan Devarajan, Prasanna Rao and Anand Chandra—have decades of experience in agribusiness and agribusiness. Under their leadership, Arya has worked to build trust, effective networks and sustainable value for value chain actors including smallholder farmers, FPOs (agricultural producer organizations), small aggregators and agribusinesses. With established market fit for products with differentiated efficiencies, proven scale, and profitability managing over 3 million metric tons in 21 states, the company has created a solid foundation while creating viable options to build the power of market of smallholders and their organizations. Arya intends to use the funding to capture 20% of the $100 billion grain trading market.
“This funding round will help us gain market share for our core offerings and add more services to solidify our position as the most trusted agricultural platform in India,” said Chattanathan Devarajan, co-founder of Arya. “We believe these partnerships, old and new, demonstrate Arya’s strength in driving penetration and leading transformation within the industry.”
Matteo Pusineri, director of Asia Impact SA, said that during the pandemic, the investment firm has seen Arya transform agribusiness across India. “Arya will help realize Asia Impact’s vision of integrating underserved rural farming communities across Asia with large-scale markets,” said Pusineri. “We are confident that Arya, under the leadership of Prasanna Rao, Anand Chandra and Chattanathan Devarajan, will greatly contribute to a unique ecosystem supporting rural India’s sustainable growth story,” Pusineri said.
Another investor, Lightrock India partner Vaidhehi Ravindran, said Arya had built a strong and profitable base over the past few years and, with the addition of the market, was in a period of accelerated growth and impact. . “With a team that is a great combination of innovation (meets) careful risk management, we are confident that Arya will transform grain markets as a whole,” Ravindran said.
Varun Malhotra, Partner at Quona Capital, said Arya’s unparalleled reach in rural India, coupled with its technology-driven integrated service model, has made it one of the fastest growing agricultural trading platforms. faster in India. “Arya is successfully bridging the trust gap in post-harvest agricultural transactions through complete transparency and assurance on quality, quantity and payments. We are excited to deepen our partnership with Arya,” said Malhotra.
Asia Impact SA was advised by Shardul Amarchand Mangaldas & Co with a team led by Manav Nagaraj and KS Bhargava. Setuka Partners was the debt financing advisor to the US International Development Finance Corporation (DFC).