Funding will be used for company's lending business in the agriculture space
MUMBAI, 1 July 2020: Arya Collateral Warehousing Services, one of India’s leading post-harvest agricultural services companies has raised debt funding from responsAbility, one of the leading impact investment funds in return of non-convertible debentures (NCDs).
However, the company did not disclose how much its has raised from NCDs. But, the post-harvest agricultural services companies said that it will be using the funds to bolster its NBFC arm Aryadhan and provide lending support for farmers and FPOs.
The recent investment by responsAbility in Arya boosts investors’ confidence in the agricultural sector during these troubled times.
“We are continuously scaling our network and improving our capabilities to help streamline the warehousing and financing services in these trying times when farmers and FPOs face an unprecedented disruption in markets. We are working hard to convert this pandemic into an opportunity by maximizing the conversion of the unorganized farm business into an organised on,” Arya Collateral Warehousing Services director Anand Chandra said.
Speaking on the investment made in Arya, responsAbility head of agriculture debt Ms. Suhasini Singh said, “Sustainable food and agriculture are key target sectors for responsAbility Investments. Arya contributes directly to improving efficiencies in the agricultural value chain by not only providing post-harvest warehousing services but also affordable financing for the small holder farmers and FPOs. It generates suitable incomes, promotes sustainable operations and allows for healthy growth."
"Our financing to Arya, especially in the times of Covid-19, is intended to support them now and to ensure that their positive impact in the sector continues into the future,” Ms Shasini said.
Arya provides warehousing services to enterprises and farmers by offering tech-enabled warehousing support to store their commodities. It’s NBFC arm, Aryadhan, operates a post-harvest fintech platform to extend warehouse receipt loans to farmers, FPOs and small aggregators.
Arya addresses the gaps in the agricultural value chain in Primary and Secondary agri-markets by providing tech-enabled post-harvest linkages with integrated services including aggregation, warehousing, quality assessments, finance and market linkages. It also works as a platform to connect the supply side of the value chain to its demand-side.
responsAbility Investments AG is a leading impact asset manager, which manages USD 3.5 bn of assets invested in 304 ESG-managed high-impact companies across 76 emerging economies.
Since the company's inception in 2003, responsAbility-managed funds have invested over USD 10 bn in private debt and private equity to companies in the sectors of sustainable food, financial inclusion and climate finance whose business models directly support the United Nation's Sustainable Development Goals (SDGs).
Arya manages 2.7 Million Tonnes of commodities through its network of 1,500 warehouses with an AUM of INR 55 Bn. It also has is a 100% owned NBFC of Arya with a strong client base covering farmer, FPOs, processors and corporates and completed loan disbursements over INR 220 Crores and has already turned profitable.
