Arya.ag, a leading agritech startup based in Noida, has achieved significant financial milestones in the fiscal year 2024, reporting a revenue of ₹340 crore, an 18% increase from the previous year’s ₹288 crore. This growth has been accompanied by a remarkable surge in profitability, with net profits escalating 2.5 times to ₹19 crore from ₹7.6 crore in FY23. These results highlight Arya.ag’s strong performance in the agritech sector, which has faced many challenges in recent years.
PC: The Financial Express
It was founded with the vision to bridge agriproduce sellers and buyers. Arya.ag runs a grain commerce platform offering several services. The company offers farmgate storage, finance, and year-round supply for a diverse clientele including farmers, Farmer Producer Organizations (FPOs), financial institutions, SME processors, traders, and corporate agribusinesses. Its subsidiary, Aryadhan, specializes in warehouse receipt financing, further diversifying the company’s service offerings.
Storage and warehousing services were the largest contributor to Arya.ag’s operating revenue, at ₹212.8 crore, or 62.64% of the total revenue, with a meager 7.5% increase from last year. Of course, there was a tremendous increase in interest income from loans, which touched ₹55.4 crore, with a growth rate of 27.2%, reflecting the huge demand for funding solutions in agriculture. Other income in the form of non-operating revenue contributed additional ₹13 crore, and the consolidated income stood at ₹352 crore for the fiscal.
Despite the revenue gain, Arya.ag incurred cost escalations. The largest portion of the expenditure is services whose cost increased 3.1% at ₹183.9 crore, from 55.66% of the total expenses. Employee benefits had increased by 17.1% to stand at ₹50 crore, while the finance expenses witnessed a growth of 56.3% at ₹60 crore. Other overheads added to the total amount of ₹36.5 crore on the total of ₹330.4 crore total expenses, the latter having experienced a growth of 16% in FY24 from FY23’s amount of ₹284.6 crore.
Despite the increase in costs, Arya.ag was able to generate a profit jump due to its effective control over its expenditure. This helped it achieve a Return on Capital Employed (ROCE) of 14.87% and an EBITDA margin of 25.3%. The expense-to-earning ratio for the company stood at ₹0.97, showing a good balance between revenue and cost.
As of March 2024, the current assets stand at ₹1,114 crore and include cash and bank balances of ₹103 crore. Till date, Arya.ag has managed to garner a total sum of $144 million in funding; its investors also include Lightrock Venture and Aspada Investment Company. Recently, Arya.ag secured a commitment of $19.8 million from the United States International Development Finance Corporation (DFC) to support its agri-commerce subsidiary, Aryatech.
Arya.ag is in good shape to further grow in terms of its strong financial performance and successful funding rounds. Its approach to agritech is innovative, focusing on the whole agricultural supply chain, and these are the very reasons it would continue to attract investor interest and customer loyalty.
Arya.ag’s impressive revenue growth and significant profit increase in FY24 demonstrate its strong market position in the agritech sector. As it continues to innovate and expand its service offerings, Arya.ag is well positioned to play a pivotal role in shaping the future of agriculture in India, making it a company to watch in the coming years.
