Even as global crop prices fall, India’s Arya.ag is attracting investors — and staying profitable

New Delhi: Arya.ag is an Indian agritech company helping farmers. It has storage near farms and lending services. Even with falling global crop prices, Arya.ag has drawn in investors and stayed profitable. Recently, it raised $81 million in funding from GEF Capital Partners.

Crop prices worldwide are dropping due to risks like extreme weather and high input costs. The World Bank warns that this affects agricultural markets. Arya.ag, however, navigates these issues by not making risky commodity bets and using a smart business model. This model helps them absorb the shocks from falling prices.

Founded in 2013 by Prasanna Rao, Anand Chandra, and Chattanathan Devarajan, Arya.ag aims to give farmers more control over their crop sales. The startup offers storage and allows farmers to borrow against stored grain. This helps them avoid selling right after harvest when prices are low.

Arya.ag operates on a large scale. It stores about $3 billion worth of grain yearly, which is around 3% of India’s total output. The company helps facilitate loans worth $1.5 billion a year while keeping its bad loan rates below 0.5%.

They lend only a portion of the grain’s value. When prices drop, they manage risk by calling for more collateral or loan repayments. Rao stated that they ensure their lending is always secure.

For the year ending March 2025, Arya.ag generated ₹4.5 billion in revenue. This year, its revenue grew about 30% to ₹3 billion. Their profit after tax reached ₹340 million last year, with a 39% increase this year.

Arya.ag supports between 850,000 and 900,000 farmers across 60% of India’s districts. The startup uses around 12,000 agricultural warehouses. Their revenue comes from storage fees, loan originations, and helping sell crops.

Storage is their biggest revenue source, making up about 50-55%. They provide over ₹110 billion (around $1.2 billion) in loans to farmers each year. Some of this comes from their own funds, while the rest comes from partner banks.

Their loans have interest rates of 12.5% to 12.8%, which is lower than the rates charged by middlemen. Arya.ag approves loans digitally in less than five minutes, making access quick and easy.

Technology is key for Arya.ag. They use AI to check grain quality, satellite data for crop tracking, and special storage bags for farmers. This allows farmers to store grain even in villages without proper warehouses.

With the new investment, Arya.ag plans to enhance their technology and expand their smart farm centers. They aim to strengthen their blockchain system for better tracking of stored grain. Arya.ag hopes to be ready for an IPO in 18 to 20 months.

The startup also plans to expand its software services into other parts of Southeast Asia and Africa. Arya.ag currently has over 1,200 employees working full-time.