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HomePosts Tagged "Prasanna Rao"
Agribusiness, Finance, Funding, India, Start ups

Facility will expand Arya.ag’s assurance in commerce solutions across India’s grain commerce value chain.

 India’s largest grain commerce platform, Arya.ag has secured a $19.8 Mn commitment from the United States International Development Finance Corporation (DFC) to guarantee a debt facility for Arya.ag’s agri-commerce subsidiary Aryatech.

This financing round, following a $29 million equity raise last quarter, will expand Arya.ag’s ability to connect farmers and FPOs with buyers nationally by ensuring payment security, transaction transparency, and improved access.

By adeptly layering distinct services of storage, financing and market linkages on the same bag of grain, Arya.ag has sharpened its value proposition for all stakeholders across the grain value chain.

Speaking on the development, Prasanna Rao, Co-Founder and CEO of Arya.ag said, “This commitment from DFC represents a significant milestone in our mission to transform India’s grain commerce ecosystem. The facility will enable us to connect more farmers and FPOs to buyers much beyond their existing networks creating a more efficient and inclusive agricultural marketplace. This aligns perfectly with our proven business model that has already demonstrated profitability while driving meaningful impact across the sector.”

Arya.ag offers a comprehensive agri-commerce platform that seamlessly connects sellers and buyers of agriproducts to facilitate and streamline commerce, driving efficiencies and reducing waste, to the benefit of the entire market. The platform integrates warehouse discovery, farmgate-level storage, finance and market linkages, providing a comprehensive solution across the entire value chain by bridging the trust gap at each step.

“DFC is pleased to support AryaTech in expanding its growing agri-tech platform connecting small farmers and farmer producer organisations to buyers in underserved regions of India. This transaction aligns with our goal of supporting economic growth and prosperity in communities across India,” said James Polan, DFC’s Vice President of Health & Agribusiness.

Setuka Partners LLP, a boutique advisory firm focused on catalysing patient capital from international financial institutions for emerging and frontier market enterprises, was the exclusive advisor to this transaction.

The Group’s ground presence with a 12,000 strong warehouse network across 21 states, combined with a technology backbone integrating deep-tech computer vision, IoT and blockchain, ensures physical risks in commodity storage and finance are minimised. Arya.ag’s integrated platform places it uniquely as the only profitable Indian agritech startup at scale. With a growth of 77 per cent over the last year, the platform reported a profit before tax of Rs 22 crore in FY 24.

Facility will expand Arya.ag’s assurance in commerce

Agribusiness, Company News, India, Soil Health, Start ups, Sustainability

The 200 Smart FPOs initiative will focus on FPOs across Bihar, Jharkhand, Gujarat, Assam, Madhya Pradesh, Maharashtra, and Karnataka.

At the Rith Summit 2.0, Arya.ag, India’s largest integrated grain commerce platform, announced an initiative to transform 200 Farmer Producer Organisations (FPOs) into Smart Institutions. The initiative, launched in collaboration with key partners, aims to empower FPOs by leveraging technology and fostering collaborations to improve efficiency, promote sustainable farming practices, and build climate-resilient value chains.

Prasanna Rao, CEO & Co-Founder of Arya.ag, stated the importance of this initiative in driving the evolution of FPOs. “We believe FPCs can evolve into Smart Institutions, which leverage technology to improve efficiency in input sales and output procurement and offer a diverse range of services. Smart FPCs will also play a crucial role in building climate-resilient value chains by promoting sustainable farming practices and through corporate collaborations to support sustainable sourcing of produce,” Prasanna explained.

The 200 Smart FPOs initiative will focus on FPOs across Bihar, Jharkhand, Gujarat, Assam, Madhya Pradesh, Maharashtra, and Karnataka. Arya.ag will work closely with these FPOs to provide them with access to technologies, training, and support to enhance their capabilities and drive sustainable growth.

Jai Prakash Yadav, an FPO leader, highlighted the positive impact of Arya.ag’s support: “Through Arya.ag, we were able to connect with agricultural centres for soil testing and provide training to farmers, empowering them to adopt sustainable farming practices.”

Arya.ag will implement its agritech solutions to empower Smart FPCs with tools for scaling operations and improving efficiency. The initiative will also provide AI-powered crop advisory services to enable data-driven decision-making and optimise farming practices. Moreover, Arya.ag will facilitate digital record-keeping of farming practices to ensure traceability and transparency throughout the value chain. Collaborations with corporate partners will be established to support sustainable sourcing of produce and create new market opportunities for Smart FPCs. Training and capacity-building programmes will be conducted to enhance the skills and knowledge of FPO members in sustainable farming practices and business management.

A key feature of the initiative is the creation of a platform to connect all stakeholders, including climate champions (corporates supporting the purchase of sustainable produce), to facilitate the trade of sustainably produced commodities. Anand Chandra, Executive Director of Arya.ag, added, “We believe that only a market-led model will enable FPOs to become a hub for sustainable practices. But we also need the FPOs to be ready for the market. The 200 Smart FPOs initiative reflects our commitment to driving sustainable agriculture and empowering these farming communities into Smart Institutions.”

The initiative has received support from key stakeholders in the agriculture sector, including government agencies, development organisations, and corporate partners. Arya.ag will work closely with these partners to ensure the successful implementation of the initiative and maximise its impact on the ground.

The launch of the 200 Smart FPOs initiative at Rith Summit 2.0 is an outcome of the stakeholder discussions from Rith 1.0 held in December 2023. The initiative is expected to benefit thousands of farmers and contribute to the development of a more sustainable and resilient agricultural ecosystem in India.

The 200 Smart FPOs initiative will focus

Agribusiness, Agrotech, Company News, Digital Technologies, India

 Crystal Crop will focus 4 key states by utilising Arya.ag’s advanced satellite crop monitoring tool, “Prakshep”, which aims to provide in-depth insights into crop dynamics.

Arya.ag, India’s largest and only profitable grain commerce platform, has partnered with Crystal Crop Protection Limited, a pioneer in providing innovative crop protection, seeds and farming solutions. This partnership implements a PAN India crop monitoring initiative utilizing Arya.ag’s advanced satellite crop monitoring tool, “Prakshep”, which aims to provide in-depth insights into crop dynamics, empowering farmers with sustainable strategies to enhance farm productivity and income.

Crystal Crop Protection Limited aligns its data-driven decision-making processes with its strategic focus on key locations across India. Farmers in Rajasthan, Uttar Pradesh, Maharashtra, Haryana, Madhya Pradesh, Gujarat, Karnataka, and Tamil Nadu will utilise this initiative to ensure sustainable farm practices and better yields. These regions, integral to India’s agrarian economy, will receive special attention under this program. This long- term collaboration intends to evolve dynamically, adapting to the changing needs and challenges of India’s agricultural landscape.

Prasanna Rao, CEO and Co-Founder of Arya.ag, shares his vision for this collaboration, stating, “Our satellite crop monitoring solutions, powered by advanced AI and ML technologies, aim for a sustainable future. By harnessing Prakshep’s power, we intend to bring precision agriculture to farmers’ fingertips, empowering Agri-input organisations. This partnership signifies a significant step toward a more data-driven and technologically advanced agricultural sector in India, promising a productive future for our farmers.”

Crystal Crop Protection Limited, with its integrated operations spanning R&D, manufacturing, and extensive distribution networks, aligns seamlessly with Arya.ag’s mission to provide sustainable solutions to Indian farmers.

“Our collaboration with Arya.ag aims to embrace advanced technologies for the benefit of the agriculture sector. We aim to increase farm productivity and farmer income while promoting sustainable farming practices, cost savings, and improved decision-making for farmers across the nation,” said  Satyender Singh, CEO- Seeds at Crystal Crop Protection Limited.

This partnership stands as a testament to Arya.ag and Crystal Crop Protection Limited’s shared vision of a sustainable and technology-driven future for Indian agriculture. By unlocking the potential of Prakshep and incorporating Crystal Crop Protection’s expertise, the collaboration aims to contribute to a more resilient and prosperous future for farmers across the country.

 Crystal Crop will focus 4 key states

Agrotech, Company News, Finance, India, Start ups, Supply Chain, Warehousing

Arya.ag’s ledger has 3.2 million metric tons of commodities stored across 894 warehouses on the blockchain network.

Arya.ag, India’s largest and only profitable grain commerce platform, has launched agri loans on the blockchain. Warehouse receipt loans disbursed on its fintech arm and NBFC, Aryadhan, shall be processed on its blockchain to offer users absolute trust and transparency.

Arya.ag has tokenised commodities stored in its warehouses, and this development now enables it to board its disbursements on the blockchain. Arya.ag collaborated with Newrl, a decentralised trust network blockchain to develop this infrastructure.  For now, Arya.ag’s ledger has 3.2 million metric tons of commodities stored across 894 warehouses on the blockchain network. Through this initiative, Arya.ag is creating a world of faster, safer transactions not just for big business but, importantly, for smallholder farmers, too. This technology levels the playing field, giving them quicker, more secure access to the funds they need to thrive.

“Trust and transparency are key values for us at Arya.ag. Porting all disbursements on the blockchain while making payments in under five minutes will mark a significant leap in the efficiency of agri-lending services. The blockchain will ensure unprecedented visibility and assurance to control all physical risks in commodity storage and finance,” said Prasanna Rao, CEO of Arya.ag.

Partnering with 35 financial institutions, including banks and NBFCs, Arya.ag has emerged as a key player, managing 7.6 million tonnes of commodities with an AUM of 3 billion USD in the last financial year. “We look at collaborating with other lenders to move commodity-based warehouse-receipt financing onto the blockchain and improve the overall transparency, speed, and reliability of these transactions,” said Rao.

Navigating the agricultural lending landscape presents a fundamental challenge of establishing trust between the lender and borrower. Arya.ag solves for this through its blockchain. Arya.ag stands as the trusted custodian for every token generated, safeguarding against duplicate pledges and ownership conflicts. Upon a pledge, a smart contract initiates, allowing banks to assign a distinct identifier for the token lien. This procedure guarantees the exclusivity of each pledge while offering banks a consolidated view on all pledged commodities.

Moving the lending process to a blockchain would not only expedite transactions but also significantly enhance security and trust among participants. The decentralised nature of blockchain ensures immutable record-keeping, making the data transparent yet secure and virtually tamper-proof, thereby reducing fraud and errors. Additionally, such a move would standardise procedures and documentation, facilitating smoother interactions among various stakeholders in the commodity trading and financing sectors.

Arya.ag’s ledger has 3.2 million metric tons