[Funding alert] Arya raises $6M pre-Series B round from Omnivore, LGT Lightstone Aspada
Post-harvest agritech startup Arya has raised $6 million pre-Series B funding led by Omnivore and existing investor LGT Lightstone Aspada. The latter was part of Arya’s Series A round back in December 2016.
The startup plans to use the funding to accelerate the growth of its agri storage network, build its book in warehouse receipt financing, and create the foundations of a pan-India agri warehousing marketplace. The company plans to launch its Series B fundraising round by mid-2020.
Prasanna Rao, Co-Founder and CEO of Arya, said: “Arya’s warehousing model profitably serves the agri storage and financing needs of smallholders, FPOs, and corporations in smaller rural markets. We are delighted to have Omnivore join our investor group alongside LGT Lightstone Aspada."
"With their experience supporting technology-driven innovation in agriculture, Omnivore’s coming on board will strengthen our next generation work to further improve efficiencies in the post-harvest ecosystem.”
Arya is also launching a rural storage discovery platform, aiming to build a pan-India agri warehousing marketplace.
Jinesh Shah, Managing Partner of Omnivore, said : "The Arya team is transforming agri storage and financing across rural India, making small-scale warehousing viable at the village level, which farmers desperately require. Omnivore is thrilled to partner with Arya and Aspada to make this revolution a reality for all.”
The platform provides post-harvest services across the agricultural value chain, including warehousing, the receipt financing for the warehouses, collateral management, market linkages, and rural storage discovery.
The warehousing receipt financing is done through Aryadhan, its wholly owned NBFC subsidiary. Aryadhan provides credit to farmers, FPOs, and SME aggregators (processors/traders), who have stored agri commodities in the Arya warehouse network.
Its clients include farmers, farmer producer organisations (FPOs), financial institutions, SME agri processors, commodity traders, and corporate agribusinesses.
The Delhi-based startup claims to manage over 2.5 million MT of agri commodities at its 1,400 warehouses, with around 75 percent of its warehousing capacity located in primary and secondary (village and small mandi level) markets.
Until 2013, Arya was part of the JM Baxi Group.
Kushal Agrawal, Partner and CFO of Lightstone Aspada, said: “Arya has successfully demonstrated its unique ability to serve the hitherto underserved warehousing and warehouse receipt financing markets in primary and secondary geographies, and we look forward to the growth phase of this business alongside a like-minded investor such as Omnivore.”
(Edited by Teja Lele Desai)