IFC has announced a co-investment with technology-led agri-platform Arya.ag to strengthen India’s agricultural value chains, reduce post-harvest losses, expand access to formal finance for smallholder farmers, and scale sustainable storage and logistics across the country. Arya.ag, which serves over 800,000 farmers and 3,000 Farmer Producer Organizations (FPOs) across 21 states, will leverage this investment to offer pre- and post-harvest solutions to 2.5 million smallholder farmers and 4,000 FPOs by 2030. The initiative aligns with the World Bank Group’s AgriConnect program, combining private capital with market creation approaches to enhance farmer incomes and deliver measurable sustainability outcomes.
Agriculture remains central to India’s economy, and Arya.ag’s integrated model—combining near-farm-gate storage with financing and market linkages—reduces food wastage while increasing income opportunities for farmers. Scaling these solutions requires connecting storage, finance, and buyers in underserved regions, supporting local job creation, and enabling collaboration with women-led enterprises, FPOs, and service providers across warehousing, logistics, grading, and quality monitoring. IFC’s co-investment builds on existing partnerships, including efforts in Uttar Pradesh under the UP AGREES program and new initiatives in Andhra Pradesh with state warehousing corporations.
The co-investment involves IFC contributing US$12.8 million in structured equity participation, with lead investment from GEF South Asia Growth Fund III and a total of US$48 million in primary growth capital mobilized. India’s agtech market, projected to grow from USD 4 billion in 2022 to USD 24–28 billion by 2030, remains largely untapped, with less than 1.5 percent of smallholder farmers currently reached. Inadequate storage infrastructure causes approximately two percent of total foodgrain losses each year, valued at around INR 210 billion, while direct market access through agtech platforms can increase farmer price realization by 25 to 40 percent compared to traditional channels.
Prasanna Rao, Arya.ag’s CEO, emphasized that the platform addresses trust deficits in formal markets by integrating infrastructure, digital visibility, and financing, enabling equitable participation for even the smallest stakeholders. Alipt Sharma of GEF Capital Partners noted that Arya.ag improves storage efficiency, reduces wastage, facilitates access to finance, and lowers the carbon footprint across supply chains. IFC’s Regional Director for South Asia, Imad N. Fakhoury, highlighted how this partnership aligns private capital with World Bank Group initiatives to create inclusive, resilient, and sustainable agri value chains that generate jobs and boost rural prosperity, particularly for women smallholder farmers.
Other investors in the co-investment include British International Investment, Proparco (AFD Group), and Swedfund. The investment addresses key challenges in Indian agriculture, including post-harvest losses, limited access to formal credit, fragmented market linkages, and climate-related risks. By combining private investment with AgriConnect’s market creation approach, IFC is helping de-risk agri markets, accelerate the development of storage, finance, and market infrastructure, and shift fragmented agricultural systems toward scalable, private-sector-led solutions that raise incomes, reduce food loss, and strengthen resilience.
Arya.ag, India’s largest profitable grain commerce platform, offers farmers freedom of choice in selling their produce post-harvest, providing farmgate-level storage, seamless finance, and transparent commerce. The platform currently spans 60 percent of Indian districts with 12,000 agri-warehouses, aggregates USD 3 billion of grain annually, and facilitates over USD 1.5 billion in loans for smallholder farmers and stakeholders. IFC, a member of the World Bank Group, supports private sector development in emerging markets and leverages capital, expertise, and influence to create opportunities and sustainable economic growth.
