Arya.ag Secures $30 Mn Debt Facility

SUMMARY

GuarantCo provided two partial guarantees to HSBC India for the loan given to Arya.ag

The company will use the capital for providing post-harvest liquidity to farmers, farmer producing organisations (FPOs) and small agri-enterprises

Founded in 2013 by Prasanna Rao, Anand Chandra, and Chattanathan Devarajan, Arya.ag is a grain commerce platform that offers storage as a service to farmers and their organisations to choose when and to whom to sell their produce after harvest

Agritech startup Arya.ag has secured a $30 Mn (around INR 259.4 Cr) debt funding from financial services major HSBC. The debt was guaranteed by GuarantCo, a financial institution under the Private Infrastructure Development Group (PIDG).

GuarantCo provided two partial guarantees to HSBC India for the loan given to Arya.ag.

The startup will use the capital for providing post-harvest liquidity to farmers, farmer producing organisations (FPOs) and small agri-enterprises.

Arya.ag has three verticals – Arya Collateral, Aryadhan, and Aryatech. The Mumbai-based startup claims to work with about a Mn of farmers who are members of 800 FPOs, and also work with more than 5,000 aggregators on the supply side, while on the demand side, it is connected with about 2,000 millers and major corporates on its platform.

Rao told Inc42 that it is operational in 60% of 21 Indian districts that it is present today. He further added that of all states, Bihar has one of its largest client base, which constitutes 26-30% of its revenue.

Prior to the current debt round, Arya.ag secured a commitment of $19.8 Mn (INR 166.4 Cr) from US International Development Finance Corporation (DFC) to extend a debt facility for its agri commerce subsidiary Aryatech, in October last year.