Posted on October, 29, 2024 at 03:52 pm
Arya.ag, a leading Indian grain commerce platform, has secured a USD 19.8 million commitment from the United States International Development Finance Corporation (DFC) to guarantee a debt facility for its agri-commerce subsidiary Aryatech.
The funding, announced Monday, follows the company's USD 29 million equity round raised in the previous quarter.
The agricultural technology company operates a digital marketplace that enables farmers and Farmer Producer Organisations (FPOs) to store and sell their post-harvest produce.
Currently, Arya.ag maintains a presence across 60 per cent of Indian districts, managing over 11,000 agri-warehouses and facilitating the annual aggregation and storage of grain valued at USD 3 billion.
"DFC is pleased to support AryaTech in expanding its growing agri-tech platform connecting small farmers and farmer producer organisations to buyers in underserved regions of India," said James Polan, DFC's Vice President of Health & Agribusiness.
"This transaction aligns with our goal of supporting economic growth and prosperity in communities across India," he added.
The platform has demonstrated strong financial performance, reporting a profit before tax of Rs 22 crore in FY24, with a 77 per cent growth over the previous year.
The company currently facilitates the disbursement of over USD 1.5 billion in loans to small-holder farmers, their organisations, and other stakeholders.
Prasanna Rao, Co-Founder and CEO of Arya.ag, emphasised that the new funding will enhance the company's ability to connect farmers and FPOs with buyers beyond their existing networks, fostering a more efficient and inclusive agricultural marketplace.
The investment comes at a time when India's agritech market is poised for significant growth. According to the India Brand Equity Foundation, the sector is projected to expand from USD 4 billion in 2022 to USD 34 billion by 2027, with the food crop segment alone expected to grow from USD 3 billion to USD 25 billion during the same period.
Source: KNN India