Indian agritech platform Arya.ag announced a major $81 million Series D funding round this week, even as global commodity prices continue to slide. The investment, led by climate-focused GEF Capital Partners, highlights the company's resilient business model that combines grain storage, financing, and market access for farmers. Despite market volatility, Arya.ag reported growing revenues and profits, proving that smart infrastructure can thrive where traditional agriculture struggles.
Background: Volatility Hits Global Commodities
Global crop prices have faced downward pressure from oversupply, trade shifts, and weather risks. Many agri businesses suffer inventory losses when prices drop. In India, smallholder farmers often lack storage and credit, forcing quick sales at low prices. Arya.ag, founded in 2013, addresses this by building farmgate networks that let farmers store crops longer and access loans against them.
Key Developments: Fresh Capital and Strong Numbers
Arya.ag raised approximately $81 million (₹725 crore) in equity, with about 70% as primary capital. The round positions GEF Capital as one of the largest shareholders.
Financial highlights show resilience:
- FY25 (ended March 2025): Net revenue ₹450 crore (~$50 million), profit ₹34 crore.
- H1 FY26: Revenue ₹300 crore (up 28-30% YoY), profit ₹31.5 crore (up 39% YoY).
The company operates across 60% of India's districts with 12,000 leased warehouses, handling $3 billion in grain annually and facilitating $1.5 billion in loans. Storage drives 50-60% of revenue, finance 25-30%, and commerce the rest.
Co-founder and CEO Prasanna Rao noted the funds will expand climate-smart practices, reduce post-harvest losses, and strengthen blockchain tracking for stored grain.
How It Works: A Buffer Against Price Swings
Arya.ag avoids owning commodities directly. Farmers store grain in nearby facilities, getting loans at 70-80% of value as collateral. The platform monitors prices and issues margin calls if needed, keeping non-performing assets below 0.5%.
Think of it as a bank safe for crops: Farmers deposit harvest, borrow against it, and sell when prices rise—without distress sales. Tech like AI for grain quality checks and satellite monitoring adds efficiency.
Why It Matters: Boost for Farmers and Food Security
This model helps smallholders manage risks from climate change and market dips, potentially raising incomes. Reducing post-harvest losses (often 10-20% in India) supports national food security. For the industry, Arya.ag's profitability stands out in a sector where many startups burn cash.
Challenges Ahead
Scaling warehouse networks requires heavy capex, even if leased. Climate extremes could strain storage. Competition from players like DeHaat and broader economic slowdowns pose risks. Over-reliance on collateralized lending might face hurdles if prices crash severely.
Looking Forward: IPO on the Horizon
With this infusion, Arya.ag aims to be IPO-ready in 18-20 months. Funds will bolster tech, expand Smart Farm Centres, and reward sustainable practices. Selective international growth is also possible.
Arya.ag's success shows how targeted infrastructure can turn agriculture's pain points into profitable opportunities—offering a blueprint worth watching as India modernizes its farm economy.