Delhi-based post-harvest agritech and fintech company Arya has raised US$21 million in Series B round of funding. According to the statement, the funding was structured in a mix of equity and debt. The equity roundof the financing was led by Quona Capital, a venture firm focused on fintech in emerging markets, alongside existing investors LGT Lightstone Aspada and Omnivore.
The debt side of the financing was also patronized by several lenders.
The fresh capital inflow will be used to expand financing to local farmers through the company’s embedded fintech arm Aryadhan Financial Solutions. The company also plans to strengthen its digital post-harvest services and market linkages platform a2zgodaam.
Co-founded by Chattanathan Devarajan, Prasanna Rao and Anand Chandra Arya aims to address some of the post-harvest challenges of the underserved farming sector.
“Our belief is that we should cater to the two-thirds of the market that are currently underserved. The Kota mandi (market), for instance, has 35 bank branches in a kilometre of radius. But if you travel 70 to 80 kilometres away from Kota, this really declines,” said Prasanna Rao co-founder of Arya
“Arya is addressing a vastly underserved market of farmers in India, half of whom previously had little access to post-harvest finance,” said Ganesh Rengaswamy, co-founder and partner at Quona Capital, in a statement. “We believe Arya’s unique approach, providing a full-service digital platform with embedded finance and differentiated efficiencies for small farm holders, will drive the future of farming in India.”