Noida-based Arya.ag secures fresh funding from existing investors to strengthen agriculture value chains and farmer services across India
Introduction:
Arya.ag, a leading agritech startup that connects agricultural producers and buyers through its grain commerce platform, has raised approximately $29.2 million (Rs 242.36 crore) in a new funding round led by existing investors Asia Impact SA and Quona Capital. The Noida-headquartered company passed a special board resolution to issue 53,695 CCPS at Rs 45,137 each to secure the capital.
This marks Arya.ag’s first fundraise since its $60 million Series C round in January 2022, which was led by Asia Impact SA, Lightrock, and Quona Capital. The startup has now raised around $110 million in total funding to date. Sources indicate this is likely a pre-Series D round that values the company at an estimated $325 million post-money.
Arya.ag will use the fresh capital to expand its integrated grain commerce platform, which leverages technology to efficiently connect agri producers (sellers) with buyers. The startup also offers crucial services to farmers, including warehousing solutions and access to working capital through partnerships with third-party lenders.
According to the company’s regulatory filings, Arya.ag received Rs 134.46 crore from Asia Impact, Quona Blue Earth, and Accion Quona in this round. Prior to this fundraise, Lightrock (formerly Aspada Investment) was the largest external shareholder with a 17.89% stake, followed by Lightrock Venture with 12.84% ownership.
“This funding reaffirms the confidence our investors have in Arya.ag’s mission to strengthen agriculture value chains and improve market linkages for farmers,” said Prasanna Rao, co-founder and CEO of Arya.ag. “We remain committed to driving positive impact at the farmgate through our human-centered approach and integrated range of services.”
Traction and Financials:
Arya.ag has demonstrated strong growth and profitability, setting it apart from many startups of similar vintage. The company’s gross revenue grew 49.48% year-over-year to reach Rs 290 crore in FY2023, while its profit multiplied 11 times to Rs 7.58 crore during the same period.
In the fiscal year ending March 2024, Arya.ag claims its net revenue further increased to Rs 360 crore, accompanied by a net profit of Rs 17 crore. The audited financial statements for FY2024 are yet to be filed.
“Arya.ag’s focus on building a sustainable and profitable business model while creating value for all stakeholders in the agricultural ecosystem has been impressive,” noted an investor who participated in the round. “We believe the company is well-positioned to drive the digitization and financialization of agri-commerce in India.”
Ecosystem Impact:
The agritech sector has emerged as a bright spot in the Indian startup ecosystem, attracting significant investor interest and catalyzing innovation to address systemic inefficiencies. Arya.ag competes with other prominent agritech players such as DeHaat, Ninjacart, and Bijak, all working to streamline agricultural supply chains and improve farmer incomes.
This latest funding round not only underscores the growing market opportunity in agritech but also highlights the importance of startups that prioritize profitability and sustainable growth. As more agritech companies achieve scale and demonstrate positive unit economics, the sector is poised to attract greater capital flows and drive the digitization of Indian agriculture.
Conclusion:
Arya.ag’s $29 million fundraise from existing investors reinforces the startup’s position as a leading player in India’s rapidly evolving agritech landscape. By leveraging technology to connect farmers with buyers, providing essential services, and prioritizing profitability, Arya.ag is well-positioned to drive positive impact at scale. As the agritech sector continues to mature, startups like Arya.ag will play a pivotal role in shaping the future of Indian agriculture.