Arya.ag partners with MAS Financial Services to offer agri-finance to small farmers, FPOs

Date:02-11-2022

Integrated grain commerce platform Arya.ag on Tuesday announced a tie-up with MAS Financial Services to offer agri-finance to farmers, with a specific focus on small farmers and Farmer Producer Organizations (FPOs).

Arya will offer this service through its lending services arm -- Aryadhan Financial Services, the company said in a statement.

Integrated grain commerce platform Arya.ag on Tuesday announced a tie-up with MAS Financial Services to offer agri-finance to farmers, with a specific focus on small farmers and Farmer Producer Organizations (FPOs).

Arya will offer this service through its lending services arm -- Aryadhan Financial Services, the company said in a statement.

Initially, the tie-up will offer digital lending services delivered over Arya.ag's platform, to farmers in Maharashtra, Gujarat, Rajasthan and Madhya Pradesh.

With this tie-up, Arya.ag and MAS Financial Services are aiming to achieve a Rs 100-crore co-lending portfolio with new-age digital technologies driving this enablement.

The company is also in discussion with various banks for co-lending arrangements as it aims to serve as the biggest fintech platform in the agri-space with a win-win proposition for both recipient farmers and banks, which presently face challenges in reaching out to rural India with limited connectivity.

''We are excited about this association with MAS as it creates a huge opportunity to benefit smallholder farmers. Post-harvest agri-financing through Warehouse Receipt Finance (WRF) has a large unaddressed market estimated to be close to Rs 1 lakh crore, two-third of which is out of the reach of the formal banking sector.

''Collaboration between banks and integrated agritech players paves the way to service consumers deprived of access to financial services,” Arya.ag co-founder Chattanathan Devarajan added.