Agritech startup Arya.ag, which secured $30 million in debt financing last month aims to be IPO ready by FY27. Arya.ag has so far raised a total funding of $84 million in equity and $102.05 million in debt. In July last year, it raised $29 million in a pre-Series D funding led by Switzerland-based Blue Earth Capital. The firm will be raising the next round of funding by the end of 2025.
Backed by investors such as Lightrock, Omnivore, Blue Earth Capital, Quona Capital and Asia Impact, it will use the capital to provide post-harvest liquidity to farmers, FPOs and small agri-enterprises, to grow its lending book and facilitate more trade.
The startup feels that its warehousing business, Arya Collateral, is self-sufficient but its agri-fintech platform Aryatech and Aryadhan (NBFC) are capital-guzzling businesses. “These will need capital. We will be focusing first on leveraging the equity which we raised in June, get our debt-equity ratio adequately and then go for a funding round to grow further,” Anand Chandra, co-founder and executive director, said.
The startup has set a target of Rs 100 crore profit and Rs 630-640 crore operating revenue by FY26. It will be clocking around Rs 40 crore in profit and Rs 450 in revenue this fiscal. In FY24, the Delhi NCR headquartered startup’s operating revenue increased 18% to Rs 340 crore and profit surged 2.5x to Rs 19 crore. The growth will be driven by deepening its position in its existing segments such as storage and finance solutions & trading services and the introduction of new verticals such as logistics as a service.
Launched in 2013, Arya.ag is a grain commerce platform that offers solutions across the entire value chain. It enables farmgate storage, warehouse discovery, finance and market linkages by connecting agriproduce sellers including farmers, 1,300 farmer producer organisations (FPOs) and small aggregators with 2,000 SME food processors, traders and 100 corporates such as ITC, Britannia and Adani.
Arya.ag is currently piloting the logistics model in some pockets of MP and Bihar and plans to launch the service by the end of this fiscal.
“Today when a farmer sells the produce using our platform, the buyer has to come to the warehouse and pick up those stocks. With our new service, the delivery will be done at the doorstep,” Chandra told FE. The company will partner with service providers to provide the services to its clients. Arya.ag operates across 425 districts in 21 states. It has over 12,100 warehouses listed on its platform, out of which it directly manages over 4 million metric tonne of storage across 12 million sq ft in 3,500 warehouses. Around $3 billion worth of grain is stored annually across these warehouses.