Arya.ag Achieves Milestone as First Agritech Startup with Dual Funding Rounds in 2024
Arya.ag has made history by becoming the inaugural agritech startup to complete two funding rounds in 2024. This accomplishment is attributed to a remarkable growth in scale while consistently remaining profitable, a notable achievement in recent years within this sector.
Financial Performance Overview
According to its consolidated financial statement from the Registrar of Companies (RoC), Arya.ag’s operating revenue experienced an 18% increase, reaching Rs 340 crore in FY24, compared to Rs 288 crore in FY23.
About Arya.ag
Based in Noida, Arya.ag operates as a grain commerce platform that bridges the gap between sellers and buyers of agricultural produce. The platform facilitates:
- Farmgate storage
- Financial services
- Year-round supply
Its diverse clientele includes farmers, Farmer Producer Organisations (FPOs), financial institutions, small and medium-sized processors, traders, and corporate agribusiness entities. Additionally, Arya.ag’s subsidiary, Aryadhan, provides financing based on warehouse receipts.
Revenue Breakdown
- Storage and Warehousing: Contributed Rs 212.8 crore, accounting for 62.64% of the total operating revenue, reflecting a 7.5% growth.
- Interest Income: Rose significantly by 27.2%, amounting to Rs 55.4 crore.
- Other Income: Contributed Rs 71.5 crore.
- Non-Operating Revenue: Added an extra Rs 13 crore, bringing the total income to Rs 352 crore in FY24.
Expense Overview
On the expenditure side:
- Cost of Services: The largest expense, which increased by 3.1%, reaching Rs 183.9 crore, representing 55.66% of total expenses.
- Employee Benefits: These costs rose by 17.1% to Rs 50 crore.
- Finance Expenses: Saw a significant increase of 56.3%, reaching Rs 60 crore.
- Other Expenses: Contributed Rs 36.5 crore.
Overall, Arya.ag’s total expenses escalated by 16%, amounting to Rs 330.4 crore in FY24, up from Rs 284.6 crore in FY23.
Profit and Ratios
Arya.ag’s profit significantly surged by 2.5 times, rising to Rs 19 crore in FY24, compared to Rs 7.6 crore in FY23. The Return on Capital Employed (ROCE) and EBITDA margin stood at:
- ROCE: 14.87%
- EBITDA Margin: 25.3%
The company maintained an expense-to-earning ratio of Rs 0.97.
Current Assets and Funding
As of March 2024, Arya.ag reported current assets amounting to Rs 1114 crore, which includes Rs 103 crore held in cash and bank balances. According to various sources, the company has raised a total of $144 million in funding to date, with Lightrock Venture and Aspada Investment Company as its primary investors. Recently, Arya.ag secured a commitment of $19.8 million from the United States International Development Finance Corporation (DFC) to support a debt facility for its agri-commerce subsidiary, Aryatech.