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Grain commerce platform Arya.ag reported a four-fold jump in net profits for the first half of the current financial year as more farmers used the company’s services such as warehousing, market linkage and post-harvest finance.
Arya.ag reported a profit of ₹14.38 crore on gross revenues of ₹622 crore during H1FY23 as compared to a net of ₹3.86 crore on revenues of ₹107 crore in the same period last year.
Arya.ag said the increase in profitability can be attributed to its ability to layer multiple services. The platform enables the farmer to store her produce immediately after harvest, to avoid distress sale. It embeds finance on the stored grain through its fintech engine and, when prices improve in the post-harvest period, it connects the farmer to buyers. It earns revenue at each step, with the cost decreasing at each successive step. The platform has assets under management of over ₹15,000 crore, making it India’s largest grain commerce platform, it said.
Loan disbursals
The digital lending arm of Arya crossed the ₹350-crore mark in disbursals with negligible non-performing assets (NPAs), almost doubling on a yearly comparison. Its subscriber base grew to over 15,000 cumulatively for its three integrated services, namely intelligent warehousing, digital lending, and digital market linkages.
Anand Chandra, Executive Director and Co-Founder, Arya.ag, said, “As India’s largest agritech platform, we have been able to establish unprecedented relevance of our services to the agri ecosystem. By solving for the end-to-end needs of our customers through integrated services, we have been able to create a highly scalable and profitable model.
Blockchain ledger
“Another of Arya.ag’s unique capabilities has been the tech-led approach towards consolidating and enriching its value proposition to end-users. The start-up is in the advanced stages of introducing the country’s first-of-its-kind public agri blockchain ledger.”
The company recently picked up a stake in computer-vision start-up Assert AI and acquired agriculture data science company Prakshep. It launched an insta-loan service for farmers against their commodity stored at Arya.ag’s warehouses and an insta-release service that gives farmers complete control over their farm produce on repayment of loans.
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