Transforming Farmer Financing and Storage solutions Amid Global Agricultural Shifts

Addressing Agricultural Market Volatility with Cutting-Edge Innovations

As global agriculture grapples with unpredictable weather patterns and fluctuating crop prices, Arya.ag, a pioneering Indian agritech company, has carved out a profitable niche by offering farmers localized storage options combined with flexible lending services. This approach empowers cultivators to better manage their cash flow without being forced to sell during unfavorable market conditions.

Significant Capital Injection Accelerates Technological Advancements

Arya.ag recently raised $81 million through an all-equity Series D round led by GEF Capital Partners. Over 70% of this funding represents new capital aimed at expanding operational capacity and integrating advanced technologies such as AI-powered grain quality analysis and blockchain-enabled inventory tracking systems.

The Impact of Global Commodity Price Fluctuations on Farmers

The agricultural sector worldwide is under pressure from declining commodity prices driven by rising input costs, geopolitical trade tensions, climate-induced extreme weather events, and evolving biofuel regulations. These factors have compressed profit margins for farmers globally. arya.ag’s model circumvents direct exposure to commodity price swings by focusing on secured loans backed by stored grain assets rather than speculative trading.

A Farmer-First approach Enhancing Crop Sales Timing and Credit Access

Founded in 2013 in Noida by former banking experts Prasanna Rao, Anand Chandra, and chattanathan Devarajan, Arya.ag centers its business around giving farmers greater control over when they sell their produce. By providing storage facilities close to farms alongside credit against warehoused crops, the platform helps growers avoid the typical post-harvest price slump caused by market oversupply.

• Extensive Storage Network: Operating nearly 12,000 leased warehouses covering about 60% of India’s districts;
• Lending Volume: Facilitates approximately ₹110 billion ($1.4 billion) in annual loans-of which nearly ₹30 billion ($380 million) comes from its own non-banking finance subsidiary;
• Diverse Buyer Linkages: Connects farmers directly with processors, millers, and agri-businesses to secure better pricing opportunities;

Lasting Risk Controls Keep Default rates Exceptionally Low

Arya.ag extends credit conservatively-only a portion of the stored grain’s value is lent against-and continuously monitors real-time market data. When prices fall sharply or risks increase, margin calls require borrowers either to repay part of their loan or add more collateral stock. This disciplined risk management keeps gross non-performing assets below 0.5%, even amid volatile markets.

“Our secured lending framework maintains strong margins that protect us even if commodity values drop up to 30%, ensuring minimal defaults,” explained Prasanna Rao.

Robust Financial Growth Demonstrates Business Resilience

The fiscal year ending March 2025 saw Arya.ag generate net revenues nearing ₹4.5 billion (around $55 million), while first-half revenue for the current year surged approximately 30% year-over-year to ₹3 billion ($37 million). Profit after tax also rose significantly-from ₹340 million ($4 million) last year-to an increase approaching 40% so far this cycle.

Diversified Revenue Streams Strengthen Operational stability

The company generates income through multiple channels: storage fees paid by farmers account for roughly half (50-55%) of total revenue; loan origination fees from partner banks contribute about one-quarter (25-30%), while commerce-related activities make up the remainder.

Pioneering Digital Technologies Streamline Operations Nationwide

• Artificial Intelligence: Automated grain quality assessments accelerate loan approvals using objective data rather than manual inspections;
• Satellite Monitoring: Crop health surveillance before harvest enables early detection of supply changes;
• IOT-Enabled Storage Bags: Airtight containers equipped with sensors preserve grains longer even in remote villages lacking formal warehouses;
• Blockchain Inventory Tracking: A secure digital ledger records all stored inventory movements ensuring openness throughout lending and trading processes;

This technology-driven infrastructure supports rapid digital loan disbursements within five minutes-a stark contrast to traditional bank timelines-and facilitates detailed risk management across hundreds of thousands of smallholder clients nationwide.

A Strategic Vision for Regional expansion Through Scalable software Platforms

beyond serving nearly nine hundred thousand Indian farmers across diverse agro-climatic zones via over twelve thousand leased warehouses,
Arya.ag plans selective international growth primarily through software licensing models.
Pilot projects are already underway in parts of Southeast Asia and Africa demonstrating adaptability across varied agricultural environments.
With a workforce exceeding 1,200 full-time employees dedicated to continuous innovation,
the company aims for an initial public offering within two years supported by improved profitability following recent capital infusions.