Arya.ag, an agritech startup, receives $60 million in funding, with a $300 million valuation

• ByStartupStory     |    January 18, 2022

Arya.ag, an agritech startup, has raised $60 million in a Series C funding round led by Asia Impact SA, a Luxembourg-based investment firm. Existing investors, such as Lightrock India and Quona Capital, took part in the fundraising as well.

A senior company executive said, the company’s post-money valuation has reached $300 million.

According to Prasanna Rao, co-founder and MD of Arya.ag, $14 million was raised through debt from investors such as the US Development Finance Corporation (USDFC) and ResponsIbility, a Geneva-based development finance institution as reported by ET

Next, the company is looking to raise $100 million to fund its expansion plans.

“Given the significant increase in our volumes and the expansion of our lending book, we will need to raise more capital soon to keep up.” We’ve already started a $100 million fundraising campaign, which should be completed in the first half of this year,” Rao said. “Over the next 24 months, we expect the company’s revenues to reach Rs 1,000 crore.”

Arya is an integrated grain commerce platform that focuses on offering post-harvest services, founded by Rao, Chattanathan Devarajan, and Anand Chandra. It has 10,000 warehouses and operates in 425 districts across 21 states. The company has a $2 billion grain inventory and has disbursed $600 million in funding each year. Its annualised revenue run rate is currently Rs 300 crore.

“We have seen Arya transform agri-commerce across India as a result of the (Covid-19) pandemic,” said Matteo Pusineri, director of Asia Impact SA. “Arya will assist Asia Impact in realising its vision of connecting rural underserved farming communities across Asia to markets on a large scale.”

It has given smallholders and their organisations a viable option for increasing their market power. Rao stated, “We intend to use the funding to capture more than 20% of the $100 billion grain commerce market.”

Over 3 million tonnes of grain are managed by the company across 21 states.

“Over the last few years, they’ve built a strong and profitable foundation, and now, with the addition of the marketplace, they’re in a period of accelerated growth and impact,” said Vaidhehi Ravindran, partner at Lightrock India.

Arya is “successfully bridging the trust gap in post-harvest agri transactions through complete transparency and assurance on quality, quantity, and payments,” according to Varun Malhotra, partner at Quona Capital.

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