Agritech startup Arya.ag secures $19.8 million debt commitment from DFC

Arya.ag, a Noida-based grain commerce platform focused on the agricultural sector, has received a $19.8 million debt facility guarantee from the U.S. International Development Finance Corporation (DFC).

The funds are allocated to AryaTech, Arya.ag’s agri-commerce subsidiary, to support its efforts in connecting farmers and farmer-producer organizations (FPOs) with buyers, expanding its capacity to reach a broader market.

The development comes nearly four months after it raised Rs 242.36 crore (approximately $29.2 million) in funding led by existing investors, including Asia Impact and Quona Capital, through Quona Blue Earth and Accion Quona.

Enhancing market linkages for farmers and FPOs

With this new financial backing, Arya.ag aims to strengthen its market linkage capabilities, providing farmers and FPOs with a secure and transparent platform to engage with buyers across India.

The firm has designed an end-to-end service model that encompasses warehousing, financing, and market access directly from the farmgate.

This setup is intended to reduce agricultural waste, enhance payment security, and make transactions more transparent, aligning with DFC's objective to support economic development in underserved regions.

DFC Vice President of Health and Agribusiness, James Polan, commented on the transaction, saying, “DFC is pleased to support AryaTech in expanding its growing agri-tech platform connecting small farmers and farmer producer organisations to buyers in underserved regions of India. This transaction aligns with our goal of supporting economic growth and prosperity in communities across India.”

Arya.ag’s expanding presence across India

Currently, Arya.ag operates in 60% of India’s districts, with a warehouse network of over 12,000 locations, where it utilizes technology such as IoT, computer vision, and blockchain to manage inventory and reduce operational risks.

The startup claims to store $3 billion worth of grain annually and to have facilitated over $1.5 billion in loan disbursements to smallholder farmers and other stakeholders in the agricultural sector.

Prasanna Rao, Co-founder and CEO of Arya.ag, said, "This commitment from DFC represents a significant milestone in our mission to transform India's grain commerce ecosystem. The facility will enable us to connect more farmers and FPOs to buyers, creating a more efficient and inclusive agricultural marketplace. This aligns perfectly with our proven business model that has already demonstrated profitability while driving meaningful impact across the sector."