Startup Agritech Arya has raised $ 21 million in a mix of equity and debt in its Series B round. Quona Capital led the equity circle by participating with existing investors LGT Lightstone Aspada and Omnivore. Several lenders have also been involved in adding additional debt financing to the company.
As part of the investment, Varun Malhotra, principal at Quona Capital, will join Arya’s board.
Noida’s headquarters had earlier raised $ 6 million in its pre-Series B financial round in March. The recent funding will be used to extend funding to farmers through Arya Aryadhan’s finite technology arm and strengthen its post-harvest and market links platform.
“Of the US $ 130 billion worth of food grains produced by India annually, there are huge losses in primary and secondary markets due to lack of storage, forcing farmers to sell off-cycle for lower incomes,” said Arya co-founder and CEO , Prasanna Rao. in a press release.
“These same farmers depend on funding for their cash flow needs, but are extremely underserved, damaging their ability to store and sell their products optimally. Arya’s digital solution pairs storage with financial and critical market link services to help smallholder farmers thrive,” he added.
Launched by Rao, Chattanathan Devarajan and Anand Chandra, Arya offers storage, warehouse management, built-in finance and market links to agricultural producers and buyers across India. Arya’s clients include farmers, farmer producer organizations (FPOs), financial institutions, SME agricultural processors, commodity traders and corporate agricultural businesses.
The start-up claims to have more than 2.5 million tonnes of storage capacity through 1,500 warehouses in 20 Indian states. It effectively links the supply side of the agro-ecosystem with the demand. Arya’s NBFC subsidiary, Aryadhan Financial Solutions, helps sellers of agricultural commodities to avoid distressed sales of produce by extending post-harvest credit. On the financial side, it has completed loan expenses of more than Rs 250 crore.
Arya will join Clover, Arya, DeHaat, Kamatan Farm, Bijak, Ninjacart, WayCool and more than 20 other agricultural-focused start-ups that have secured funding in 2020.