Agritech startup AryaCollateral raises $21 million in Series B round

Noida-based agriculture technology startup Arya Collateral has raised $21 million through a mix of equity and debt as part of its Series B round. Washington-based Quona Capital led the equity investment with existing investors LGT Lightstone Aspada and Omnivore. Multiple lenders provided additional debt financing to the company.

In a statement, the startup said the funds would be used to expand financing to farmers through Arya's embedded fintech arm Aryadhan and to strengthen its digital post-harvest services and market linkages platform A2Z Godaam.

As part of the investment, Varun Malhotra, Principal at Quona Capital, will join the Arya's board.

Speaking on the investment, Quona Capital co-founder and partner at Ganesh Rengaswamy said Arya was addressing a vastly underserved market of farmers in India, half of whom had little access to post-harvest finance.

"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," Rengaswamy said.

Apart from agricultural warehousing services, Arya is also providing digital solutions for storage, processing, financing, and market linkages. Its clients include farmers, farmer producer organisations, financial institutions, SME agri processors, commodity traders and corporate agribusinesses.