Arya.ag secures $29 million in Pre-Series D funding led by Blue Earth Capital

New Delhi: Arya.ag has raised $29 million (INR 242 crore) in a Pre-Series D funding round. The investment round was led by Switzerland-based Blue Earth Capital, marking their first investment in Arya.ag, with participation from existing investors Asia Impact and Quona Capital.

Arya.ag provides a comprehensive agri-commerce platform connecting sellers and buyers of agricultural products, aiming to streamline commerce, drive efficiencies, and reduce waste across the entire value chain. The platform offers services such as warehouse discovery, farmgate-level storage, finance, and market linkages, providing a comprehensive solution across the entire value chain while addressing market inefficiencies.

The newly raised funds will be utilized to enhance Arya.ag’s market share and profitability. Strategic initiatives include the deployment of satellite technology to improve farm productivity, reduce waste, and enhance transparency across the value chain. The company will also focus on partnerships to improve Package of Practices (PoP) on-farm practices and measures to reduce food loss, thus increasing climate resilience for its farmer base. This initiative aims to benefit over 1,200 Farmer Producer Organizations (FPOs) and deliver improved climate outcomes.

In FY24, Arya.ag reported a profit of INR 17 crore on revenues of INR 360 crore, reflecting a profit growth of over 36% compared to FY23. Arya.ag is the only Indian agritech platform at scale to report profits.

Rohan Ghose, Director of Private Equity Partnerships at Blue Earth Capital, expressed, “We are incredibly proud to invest in Arya.ag. This investment aligns perfectly with Blue Earth Capital’s mission of addressing some of the world’s most pressing social and environmental challenges and, by backing this innovative company and its exceptional management team, we are not only fostering agricultural advancements but also contributing to the economic growth and sustainability of rural communities and farmers across India.”

Christian Banno, Chief Investment Officer of Asia Impact remarked, “At Asia Impact, we believe that leveraging private capital for the public good can help build a more equitable and sustainable future for all. Arya.ag’s work with farmers, FPOs and ‘climate champions’ to build trust, optimise resource allocation, and minimise adverse environmental impacts has been extremely impactful, especially in the face of climate-induced stress in agriculture. We hope that together we can strengthen these networks and create value for all stakeholders in the agricultural ecosystem.” 

Prasanna Rao, Arya.ag’s CEO and Co-founder, stated, “The Pre-Series D funding from Blue Earth Capital, along with the continued support from Asia Impact SA and Quona Capital, validates our philosophy of creating a commercially attractive business model delivering value to all stakeholders in the agri-ecosystem, especially the smallest of stakeholders at the fringes of inclusion. This investment will help accelerate our growth trajectory. With these funds, we plan to expand our reach, serve more farmers and buyers, and introduce innovative offerings to strengthen our position as India’s most trusted agri-commerce platform.”

Arya.ag aims to impact over 10 million farmers in the next 3-4 years by facilitating over $3 billion in agri-loans and creating commerce linkages of over $4 billion. The company also plans to expand its storage footprint by over 4X by 2028.

Setuka Partners served as the strategic advisor for this equity round.