Arya.ag Secures $19.8M DFC Debt Facility for Agritech Growth

Arya.ag, a homegrown agritech startup in India, recently obtained a $19.8 million debt facility guarantee from the U.S. International Development Finance Corporation (DFC) to strengthen Aryatech, its subsidiary focused on supporting farmer producer organizations (FPOs) across India.

This strategic partnership is aimed at Arya. ag’s agri-commerce arm, Aryatech, seeks to boost market access, secure payments, and enhance financial inclusion for farmers and farmer-producer organizations (FPOs) across India.

Arya. ag’s newly secured DFC debt facility marks a major milestone in its journey to transform India’s agritech landscape. This funding, which follows a recent $29 million equity injection, enables Arya.ag to amplify its ability to connect farmers with buyers far beyond their existing networks, opening up expansive market opportunities across India.

Arya.ag’s CEO Prasanna Rao said this partnership’s transformative potential will “revolutionize India’s grain commerce ecosystem” and build a secure, efficient, and scalable agricultural marketplace.

Enhancing Financial Inclusion for Farmers Through Aryatech

The DFC debt facility targets Aryatech, Arya. ag’s agri-commerce subsidiary, specifically created to support India’s smallholder farmers and FPOs. By channeling these funds, Aryatech provides essential financial access and market connections, guaranteeing payment security for farmers who frequently face payment delays and market uncertainties.

Through the debt facility, Arya.ag fortifies its commitment to India’s agricultural community, creating a trustworthy network that mitigates traditional risks and connects farmers directly with reliable buyers.

Operating in over 60 percent of India’s districts, Arya.ag has a network of 12,000 technologically integrated warehouses covering 21 states. This network leverages IoT and blockchain to minimize storage risks, enhance traceability, and ensure secure transactions across its agricultural ecosystem.

Arya.ag Standout Amidst Agritech Funding Challenges

Arya. ag’s platform integrates storage, farmgate-level finance, and direct market linkages to empower India’s farmers, eliminating inefficiencies that traditionally limit farmer profitability.

The agri-tech startup has seen remarkable financial success, distinguishing itself as India’s only profitable agritech at scale. For FY24, Arya.ag reported a profit before tax of INR 22 crore, reflecting sustained growth across its network.

In FY23, the company’s annual scale grew by nearly 50 percent to INR 290 crore, while net revenue reached INR 360 crore in FY24. Arya.ag also reported that it aggregates and stores $3 billion in grains annually and has facilitated loans exceeding $1.5 billion to support Indian farmers, FPOs, and agri-stakeholders.

Industry Standout Amidst Agritech Funding Challenges

Arya.ag stands out in an increasingly competitive agritech sector alongside peers like DeHaat, Ninjacart, and Bijak. Arya.ag’s dual funding rounds in 2024 underscore its resilience in a challenging venture capital environment, where agritech startups are navigating limited fundraising opportunities. Data reveals that agritech companies raised approximately $170 million in 2024 across 30 deals, emphasizing Arya. ag’s success in securing strategic capital.

DFC’s investment reflects a growing global interest in sustainable agritech solutions, aligning with its mission to foster economic growth in underserved markets. DFC’s Vice President of Health & Agribusiness, James Polan, highlighted the strategic importance of this funding in supporting local prosperity across India’s agricultural regions. Setuka Partners LLP, which advised on the transaction, reaffirms the role of impact-driven capital in fostering innovative agritech enterprises like Arya.ag.

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