Arya.ag NBFC arm does Rs 2,000 crore commodity financing in FY25

"Most of the NBFCs working on our space do a commodity finance of around Rs 1000 crore maximum, but we are among the first to have reached this milestone," said Anand Chandra, co-promoter of Arya.ag

Aryadhan Financial Solutions, the non-banking financial corporation (NBFC) arm of Arya.ag – one of the country’s largest grain commerce platforms – said on Monday that it has crossed ₹2,000 crore in commodity financing against warehouse receipts, making it one of the few companies in the NBFC space to reach this milestone.

 

“Most NBFCs working in our space do commodity finance of around ₹1,000 crore maximum. We are among the first to have reached this milestone,” Anand Chandra, co-promoter of Arya.ag, told Business Standard.

 

He said that Arya has disbursed ₹2,000 crore in agriculture commodity-backed loans through its NBFC in 2024-25 (FY25), while partner banks have additionally disbursed over ₹10,000 crore against warehouse receipts issued by Arya and the total facilitated financing stood at ₹12,000 crore this financial year.

 

He further said that as of March 30, the total assets under management of Aryadhan was over ₹1,000 crore. He added that on March 31, Arya.ag had 4 million metric tonnes of commodities under its management spread over 3,500 warehouses spanning 21 states of the country.

 

“We have almost 60 per cent of districts covered in India,” Chandra said. Around 0.8 million farmers are associated with Arya.ag either directly or through farmer producer organisations (FPOs).

 

Arya.ag provides a bouquet of solutions to farmers, including warehouses near farms to store commodities, assistance in availing funds against the commodity stored, and a digital platform to get buyers for the stored commodities. The commodity quality is fully underwritten by Arya, ensuring market trust and consistency, according to the company.

 

“Our revenue model is such that we charge a very nominal fee, which is the lowest in the industry, for the three services we offer,” Chandra said.

 

NBFC arm Aryadhan disburses agriculture loans directly to farmers, FPOs, and aggregators using stored produce as collateral. No land papers or credit history are required. It also offers co-lending and co-origination models with many banking partners.

 

He said that for years, the assumption has been that rural commodity finance, especially at the farm gate, is too risky, too fragmented, and too slow to scale.

 

“But this ₹2,000 crore didn’t come from top-down mandates. It came from lending against actual grain stored across India, backed by trust and technology,” Chandra said. 

 

He added that 40 per cent of its borrowers had never accessed formal credit before. Yet the book has held steady with almost no non-performing assets.