Indian grain commerce platform Arya.ag said it plans to go for an initial public offering (IPO) on one of India’s stock exchange by 2027.

This is only once it achieves a target of 1.5 billion rupees – 2 billion rupees (approximately US$17 million to US$23 million) in profits after tax, the company had said in a media roundtable held yesterday.

This is as it looks to list on the main board of the country’s stock exchange, which requires the company to achieve a certain size. One of the requirements is that the company should have a profit before tax of 150 million rupees (US$1.7 million) in three out of the last five financial years, as per the marker regulator.

It currently expects its profits to grow over 2x to 4.2 million rupees – 4.5 million rupees (US$4.8 million – US$5.2 million) in the financial year ending March 2025. In FYE 2024, it had a profit of 190 million rupees (US$2 million).

Meanwhile, GuarantCo, part of the Private Infrastructure Development Group (PIDG), has issued two partial credit guarantees for an 2.5 billion rupees (around US$30 million) loan from HSBC India to Arya.ag.

The loan, aimed at providing post-harvest liquidity to farmers, FPOs, and small agricultural enterprises, marks GuarantCo’s first involvement in India’s agricultural sector.

The funding seeks to integrate financially excluded farmers into the formal banking system, aiming to improve their crop pricing.

HSBC India and GuarantCo noted that this transaction aligns with the United Nations Sustainable Development Goals, particularly SDG 2 (Zero Hunger) and SDG 15 (Life on Land).

GuarantCo’s involvement will also support Arya.ag’s integrated platform Aryatech and its fintech unit, Aryadhan.

Currency converted from Indian rupees to US dollar: US$1 = 86.3 rupees.