India’s Arya.ag doubles gross revenue, sees 36% bump in profits

Anand and Prasanna, co-founders of Arya.ag / Photo credit: Arya.ag

India-based Arya.ag has been in the black since 2013. Now, the agritech financing company says it saw significant growth in the 2023-2024 fiscal year.

Gross revenue increased 106% from last year to hit 41.5 billion rupees (US$495.9 million). Meanwhile, net revenues rose by 20% to US$43 million.

Arya.ag’s pre-tax profits also reached US$2 million, a 36% year-on-year jump.

“This translates to a net margin of 4.7%, factoring in all expenses, including interest, taxes, and depreciation, providing a comprehensive view of our financial performance,” the company said in a statement.

Arya.ag helps Indian farmers access loans, which are often hard to come by in areas like South and Southeast Asia. Instead of borrowing from local lenders at steep rates, farmers can store their produce with Arya.ag and borrow money against those goods.

The company also helps farmers sell yields when prices go up. Arya.ag became profitable after it was acquired in 2013 by Prasanna Rao and Anand Chandra, both of whom come from the agribanking division of India’s ICICI Bank.

Arya.ag boosted its take rate by 10% last year to reach 3.5%. The company also saw success with capital-efficient models like co-lending.

Moving forward, Arya.ag plans to broaden its reach, focusing on climate-sensitive regions.

Future strategies include strengthening tech-driven connections between farmers and markets, expanding satellite tracking services, and providing farmers with decision-making tools. Arya.ag will also continue investing in blockchain and AI solutions.

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