Arya.ag, an Indian grain trading startup, secured $60 million in Series C funding in a combination of equity and debt backed by Asia Impact SA, Lightrock India and Quona Capital. It has also raised debt financing from the US International Development Finance Corporation (USDFC), among others.
The $60 million raised was made up of $44 million in equity and $16 million in debt. The post-money valuation of the agritech startup now stands at $300 million. The funding will be used to expand warehouses, increase its employee base and improve technology, according to the Noida-based startup. The company is currently in talks to raise $100 million to fund its future growth plans. It had raised $21 million in its Series B round in December 2020.
Chattanathan Devarajan, the co-founder, in a statement said: “We have grain visibility worth over $2 billion on the Arya platform, and that number is growing rapidly as we collect data from warehouses across the country. We believe these partnerships, old and new, are an endorsement of Arya’s strength to drive penetration and drive transformation within the industry.
Arya.ag, founded in 2013 by Chattanathan Devarajan, Anand Chandra and Prasanna Rao, the company facilitates on-farm storage as well as warehousing and financing solutions for farmers. The company is looking to expand its products to include logistics including insurance in the near future. The grain trading startup connects buyers and sellers of agricultural commodities, offering complete assurance on quantity, quality and payment.
The technology prevents distressed sales of farmers’ produce by facilitating on-farm storage and transparent financing solutions, giving farmers the ability to sell when and to whom they prefer. Arya plans to use the funding to capture at least 20% of the $100 billion grain trade market.
Arya’s platform also offers year-round sourcing to small and medium-sized enterprises (SMEs) and enterprise buyers through visibility into 10,000 commodity stocking locations across the country. It currently claims to manage over 3 million metric tons of agricultural produce across 21 Indian states and facilitate over $700 million in financing annually. Arya.ag bridges the trust barrier in the grain trading value chain through its integrated PAN India ecosystem, which adds value to all stakeholders by providing access to high quality products, services and products.
The company is also developing co-lending alternatives under its subsidiary NBFC – Arya Dhan, which offers secured loans. Its current reach extends to more than 650,000 farmers through partnerships with 500 agricultural producer organization programs.
Reports suggest that Indian agritech startups raised around $1.4 billion in capital through 189 deals between 2014 and January 18, 2022.