Arya.ag, an Indian agritech player, continues to fascinate the investor community. Even with the global crop prices in the tank, the company continues to boast about their profitability. Arya.ag, set up in 2013 as a startup by Prasanna Rao, Anand Chandra and Chattanathan Devarajan, is headquartered in Noida. The company focuses on providing farmers across the country with critical storage infrastructure and access to affordable credit.
In the fiscal year ending March 2025, Arya.ag expects to post a net revenue of ₹4.5 billion (around $50 million). It’s done wonders for the company, with it enjoying a record 30% revenue jump in the first half of its financial year. They landed an incredible ₹3 billion ($33.3 million). This robust growth is a testament to Arya.ag’s resilience and strategic positioning within the agritech sector.
Arya.ag’s business model is anchored in three main components: storage, finance, and commerce. The storage segment makes up about 50–55% of overall revenue, with the finance segment accounting for 25-30%. The rest of revenue comes from its business/ferry activities. These myriad income streams and cultural ties seem to provide the company with a sense of stability even when the market is unclear.
Each year, Arya.ag enables the disbursal of more than ₹110 billion (more than $1.2 billion) in loans to farmers on its platform. The company has made its lending process extremely efficient, approving loans in less than five minutes with nearly all loan disbursements handled electronically. These loans have interest rates of 12.5%-12.8%. This short competitive range provides the foundation for a sustainable lending model to farmers in need.
That security came from the lending practices the startup adopted, as its CEO, Prasanna Rao, explained.
“But because your lending is completely secured against commodities, it will never happen that the prices will fall by 90%. You already have a margin of 30%, and with your mark to market, you’ve been able to control your NPAs and defaults.” – Prasanna Rao
This strategy has helped Arya.ag maintain low NPAs & defaults, thus making their financial health even stronger.
As the company’s employee base rapidly expands past 1,200 full-time employees, Arya.ag gears towards accelerating and expanding beyond the Indian frontier. The company’s approach will be to implement a software supercharging model selectively to enable a faster, deeper penetration of new Southeast Asian and African markets. This smart move zeroes in on taking what they do best and mushrooming that success across the Virginia landscape. It uses technology to make agricultural financing and storage solutions more accessible.
Arya.ag’s profitability is clear in its financial results as well. In fact, they made a profit after tax of ₹340 million (about $3.78 million) last year. That’s a huge jump of 39% over this time last year. This rapid growth trajectory is an astonishing feat of operational efficiency for the company as well. It proves, once again, its serious dedication to helping farmers unlock innovative financial solutions.
Today, the agritech sector is dealing with a lot of external challenges—especially with the global crop prices being very volatile affecting many ag based businesses. It is Arya.ag’s emphasis on securing its lending against commodities that keeps it well-guarded against market upheaval. This strategy has come in handy in keeping their profits up, as well as investor confidence, in these uncertain economic times.
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