Arya.ag receives Rs 2.5 billion funding from GuarantCo and HSBC
Deal News | Jan 23, 2025 | Lightrock
In a strategic move to bolster India's agricultural sector, Arya.ag, an innovative grain commerce platform, has secured a Rs 2.5 billion funding facilitated by a loan from HSBC India and backed by two partial guarantees from GuarantCo, a member of the Private Infrastructure Development Group (PIDG). This funding aims to enhance post-harvest liquidity for farmers, farmer-producer organizations (FPOs), and small agricultural enterprises, facilitating their inclusion in the formal banking sector and helping to unlock greater crop value. The platform provides crucial farmgate-level storage, instant commodity-backed financing, and market linkages that enable farmers to avoid distress sales during post-harvest price slumps, often allowing them to gain 20-30% higher returns by selling in the off-season. This financial support aligns with the United Nations Sustainable Development Goals 2 and 15, aiming to double productivity and promote sustainable land use. The transaction marks GuarantCo's first involvement in India's agriculture sector, with the expectation of bringing about a transformative market impact by replicating Arya's integrated value chain solutions.
Sectors
- Agriculture
- Financial Services
- Technology
Geography
- India – The article's primary context revolves around the agricultural sector in India, where Arya.ag operates and where the funding will have its impact.
Industry
- Agriculture – The central focus of the article is on improving the agricultural sector in India by providing better financial solutions for farmers and agri-enterprises.
- Financial Services – Involvement of institutions like HSBC India and GuarantCo in providing financial infrastructure to Arya.ag highlights the financial services component.
- Technology – Arya.ag's innovative solutions and fintech integration are crucial to transforming agriculture, showcasing the role of technology.
Financials
- Rs 2.5 billion (approximately $30 million) – The funded amount extended to Arya.ag through a loan facility by HSBC India.
Participants
| Name | Role | Type | Description |
|---|---|---|---|
| Arya.ag | Recipient (Target Company) | Company | A grain commerce platform focused on improving financial inclusion and efficiency in India's agricultural sector. |
| GuarantCo | Guarantor | Company | A member of the Private Infrastructure Development Group providing partial guarantees for the loan facility to Arya.ag. |
| HSBC India | Lender | Company | A financial institution extending the loan facility to Arya.ag with support from GuarantCo. |