Even as global crop prices decline amid volatile market conditions, India’s agritech company Arya.ag is attracting strong investor interest and maintaining profitability. The company has closed an $81 million all-equity Series D round led by GEF Capital Partners, with over 70% of the funds coming as primary capital and the remainder from secondary share sales. Despite global challenges such as extreme weather, rising input costs, trade disruptions, and shifts in biofuel policies—factors that have pressured agricultural markets according to the World Bank—Arya.ag has managed to stay resilient. The company avoids direct exposure to commodity price swings by focusing on a model centered on storage, secured lending, and market access for farmers. Founded in 2013 by former ICICI Bank executives Prasanna Rao, Anand Chandra, and Chattanathan Devarajan, Arya.ag operates a network of about 12,000 agricultural warehouses across India, most of which are leased from third parties. These facilities are located near farms, enabling farmers to store their harvests and sell them later when prices are more favorable. The company also provides short-term loans against stored grain, helping farmers meet immediate cash needs without being forced to sell at low post-harvest prices. Arya.ag aggregates and stores approximately $3 billion worth of grain annually—around 3% of India’s national output—and facilitates about $1.5 billion in loans each year. Its gross non-performing assets remain below 0.5%, a remarkably low figure given the downturn in crop prices. The company’s lending model is designed to be risk-protected. It only loans a portion of the stored grain’s value and uses mark-to-market tracking, issuing margin calls when prices fall. Borrowers can respond by repaying part of the loan or adding more grain as collateral. “You’re not immune to risks,” Rao said, “but because your lending is secured against commodities, you’re protected against catastrophic price drops.” In the fiscal year ending March 2025, Arya.ag reported net revenue of ₹4.5 billion ($50 million), with first-half revenue rising 30% year-on-year to ₹3 billion ($33.3 million). Profit after tax reached ₹340 million ($3.78 million) last year and has grown 39% so far this year. The company serves between 850,000 and 900,000 farmers across 60% of Indian districts. Revenue is derived from three main sources: storage fees (50–55%), lending services (25–30%), and commerce transactions. Arya.ag disburses over ₹110 billion ($1.2 billion) in loans annually, with ₹25–30 billion ($278 million–$333 million) coming from its own balance sheet through its non-banking finance arm, and the rest originated for partner banks. Loan interest rates range from 12.5% to 12.8%, significantly lower than the 24% to 36% charged by informal commission agents, though slightly higher than typical bank rates of 11% to 12%. Rao notes that banks often do not serve small, remote farming communities due to low loan sizes and lack of physical presence. Loans are approved in under five minutes, with digital disbursements, thanks to a technology-driven system. AI is used to assess grain quality, satellite data helps monitor crop health before harvest, and sensor-equipped storage bags allow for long-term grain preservation in rural areas without traditional infrastructure. The new capital will be used to expand digital tools, scale smart farm centers, and enhance its blockchain-based grain tracking system, which ensures transparency in lending and trade. The company also plans to grow its storage and credit infrastructure. Arya.ag aims to be IPO-ready within the next 18 to 20 months. Beyond India, it is pursuing selective expansion through a software-led model, with existing deployments in parts of Southeast Asia and Africa. The company employs over 1,200 full-time staff. Avendus advised Arya.ag on the Series D round.