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Arya.ag Secures $29 Million Funding Led by Blue Earth Capital: Pre-Series D Round Takes Agritech Startup to New Heights

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Arya.ag Secures $29 Million Funding Led by Blue Earth Capital

Delhi NCR-based agritech startup Arya.ag has announced a fresh funding round, securing $29 million (approximately INR 242 crore). The investment, as revealed in regulatory filings and sourced by Inc42, marks the startup’s pre-Series D round.

Key Details of the Funding Round

The funding is spearheaded by Switzerland-based impact investment firm Blue Earth Capital, a new investor in Arya.ag. Existing investors Asia Impact SA and Quona Capital are also participating. There are indications that Arya.ag may secure additional funds within this round. The current valuation of Arya.ag stands at INR 2,400 crore.

Strategic Moves and Future Plans

Apart from the equity funding, Arya.ag is preparing for a debt funding round and is eyeing a larger Series D round by year-end.

Despite multiple attempts, Arya.ag has not provided a detailed response before the publication of this article. This funding round follows the $60 million Series C raised over two years ago from investors including Luxembourg-based Asia Impact SA, Lightrock India, and Quona Capital, which valued Arya.ag at INR 2,200 crore.

Evolution and Growth of Arya.ag

Founded in 2013 by Prasanna Rao, Anand Chandra, and Chattanathan Devarajan, Arya.ag operates across three verticals: Arya Collateral, Aryadhan, and Aryatech. Arya Collateral, the startup’s core business, offers warehousing storage facilities and claims to store grains worth around $3 billion annually.

Launched in 2017, Aryadhan provides agriculture loans against commodities, partnering with banks and digital lenders to disburse loans worth $1.5 billion to small-holder farmers and other stakeholders. In 2021, Aryatech was introduced as an online marketplace for trading food grains.

Financial Performance

Sources reveal that Arya.ag reported a profit of INR 17 crore in the financial year 2023-24 on a revenue of INR 360 crore, showing a significant increase from the INR 7.5 crore profit and INR 290 crore revenue in FY23. Overall, Arya.ag has raised over $100 million to date.

  • What are your thoughts on Arya.ag’s strategic moves in the agritech sector?
  • How do you see the impact of this funding round on the future of agritech in India?
  • Do you believe Arya.ag’s approach to combining warehousing, fintech, and marketplace solutions is effective?
  • What other innovations do you think could benefit the agritech sector?

 

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Funding

Puravankara Aims to Raise $100 Million via QIP to Accelerate Growth and Slash Debt

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Bengaluru-based real estate giant Puravankara Limited is launching a QIP valued between Rs 700-800 crore

Bengaluru-based real estate giant Puravankara Limited is set to initiate a significant financial maneuver by launching a Qualified Institutional Placement (QIP) valued between Rs 700-800 crore ($100 million), according to insiders familiar with the plan.

Founded in 1975, Puravankara boasts three prominent brands: Purva, Provident Housing, and Purva Land. By the end of March 2024, the company had completed 86 residential and commercial projects, covering around 50 million square feet. With a land bank of over 36 million square feet and more than 23,000 homes under development, Puravankara is making a bold move into the redevelopment sector in Mumbai, securing rights for two housing societies spanning three acres with a potential gross development value of Rs 1,500 crore.

“Puravankara has enlisted ICICI Securities as one of its advisors for the QIP and plans to add one or two more banks. The company is currently awaiting shareholder approval for its fundraising plans, expected in the next few days. The deal launch is likely to occur next month, post the union budget,” stated one source.

The funds raised from the QIP will be directed towards both organic and inorganic growth opportunities, capital expenditure, and debt reduction. As of March 31, Puravankara’s net debt stood at Rs 2,151 crore, up from Rs 1,741 crore at the end of the previous quarter.

Puravankara is seeking shareholder approval to raise up to Rs 1,000 crore through a postal ballot ending on July 14. If successful, this will mark the fifth real estate company to tap the stock market for equity this year.

Industry Trends and Market Confidence

Mumbai-based real estate developers have been particularly active in 2024. Lodha Group (Macrotech Developers Ltd) raised Rs 3,300 crore through a QIP in March, followed by D B Realty with Rs 920 crore in the same month. Rustomjee (Keystone Realtors Ltd) raised Rs 800 crore in May, and Capacit’e Infraprojects secured Rs 200 crore in January.

These QIPs reflect a strategic shift from reliance on debt to alternative capital sources, signaling strong investor confidence in the real estate sector’s growth prospects. According to Moneycontrol, sales and new supply in eight major cities grew by 8% and 11% YoY, respectively, driven by markets in western India, including Pune, Mumbai, and Ahmedabad, which accounted for 61% of the Q2 CY2023 share.

Corporate Fundraising Insights

The first half of 2024 has been a busy period for corporate fundraising through the QIP route, with 37 companies raising Rs 32,527 crore, compared to 45 companies raising Rs 52,349 crore in the entirety of 2023, as per Prime Database.

  1. What impact do you think Puravankara’s $100 million QIP will have on the company’s future growth and debt management?
  2. How significant is the shift from debt reliance to equity fundraising for real estate companies in India?
  3. With Puravankara’s recent foray into Mumbai’s redevelopment sector, what opportunities and challenges do you foresee for the company?
  4. Do you believe the real estate sector’s growth prospects justify the high investor confidence reflected in recent QIPs? Why or why not?
  5. How might the outcome of Puravankara’s QIP influence other real estate developers considering similar fundraising strategies?

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Funding

Paytm Gains Crucial Government Approval for Rs 50 Crore Investment in Payments Arm

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Paytm Secures Rs 50 Crore Investment Nod from Government Panel Amidst Crisis

Paytm Secures Rs 50 Crore Investment Nod from Government Panel Amidst Crisis

India’s fintech giant, Paytm, has received a pivotal approval from a government panel overseeing Chinese-linked investments to infuse Rs 50 crore ($6 million) into its key subsidiary, Paytm Payment Services. This approval, pending final vetting by the finance ministry, is set to rejuvenate Paytm’s operations and help the payments arm resume its normal business activities.

Reviving Paytm’s Core Business

The nod from the government panel removes a significant obstacle for Paytm Payment Services, which constitutes a quarter of Paytm’s consolidated revenue for the fiscal year ending March 2023. The fintech company had been under stringent scrutiny due to the 9.88% stake held by China’s Ant Group, following heightened tensions between India and China post the 2020 border clash.

Navigating Compliance and Regulatory Hurdles

Previously, Paytm faced a major setback when its separate unit, Paytm Payments Bank, was shut down by the Reserve Bank of India due to persistent compliance issues, leading to a steep decline in Paytm’s stock. The government panel had withheld approval for the investment in Paytm Payment Services, raising concerns over the Chinese stake. This had put Paytm’s payment services business at risk of winding down, as it was barred from onboarding new customers since March 2023.

Path to Recovery and Expansion

With the formalization of the approval, Paytm will be able to apply for a “payment aggregator” licence from the Reserve Bank of India, a critical step for its expansion and compliance strategy. This move is expected to stabilize and potentially boost Paytm’s operations in the payments sector.

Confidential Sources and Market Speculation

The information regarding the approval has not been officially announced, with sources from the government declining to be identified. Paytm’s spokesperson stated that the company refrains from commenting on market speculation and will adhere to disclosure obligations as per SEBI Regulations.

Optimism Amid Challenges

This development marks a hopeful turn for Paytm, which has been in a two-year waiting period for this crucial nod. The ability to continue and expand its payment services is anticipated to restore investor confidence and stabilize the company’s market position.

  • What are your thoughts on the government’s increased scrutiny of Chinese investments in Indian companies? How do you think it impacts the fintech sector?
  • Do you believe that Paytm’s recent approval for Rs 50 crore investment will help stabilize its operations and regain investor confidence? Why or why not?
  • How significant do you think the role of government approvals is in the growth and expansion of fintech companies in India?
  • What are the potential challenges Paytm might face even after securing the “payment aggregator” licence from the Reserve Bank of India?
  • In light of Paytm’s recent regulatory and compliance hurdles, what measures do you think fintech companies should adopt to ensure smoother operations and avoid similar issues?

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Funding

Fintech Startup Care.fi Secures $2.6 Million Funding to Revolutionize Healthcare Financing

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Fintech startup Care.fi raises $2.6 million from Trifecta Capital, UC Inclusive Credit

Care.fi Raises $2.6 Million to Transform Healthcare Financing with Trifecta Capital and UC Inclusive Credit

In a significant move set to reshape healthcare financing, fintech startup Care.fi has successfully raised $2 million in debt from venture debt firm Trifecta Capital, and an additional $600,000 from TV Mohandas Pai’s Aarin Capital-backed impact-focused NBFC, UC Inclusive Credit. This fresh influx of funds aims to propel Care.fi’s mission to become a healthcare-focused small finance bank, providing crucial supply chain financing for hospitals, pharmacies, manufacturers, and suppliers within the healthcare sector.

Empowering Healthcare with Financial Innovation

Sidak Singh, Co-founder of Care.fi, revealed that the raised funds will be pivotal in expanding the company’s book size. Care.fi has witnessed a remarkable 4x growth in disbursals over the last financial year, reaching an impressive $48 million. Singh emphasized the upward trajectory of their journey, highlighting the critical need to optimize operational aspects, particularly in insurance processing, to enhance patient experience during payment and discharge processes.

Innovative Solutions for Healthcare Financing

Care.fi’s flagship product, CareCred, is revolutionizing healthcare financing by allowing hospitals to secure finance against their invoices. This innovative solution provides real-time updates on payment dues and transactions, and hospitals can even set up autopay to streamline the repayment process. Vikrant Agrawal, Co-founder of Care.fi, shared that the funding will be strategically deployed to expand their business and strengthen their team with fresh talent, aiming to achieve new milestones.

A Promising Future in Healthcare Financing

Care.fi has already made a significant impact, working with over 50 hospitals and assisting more than 2,000 patients with their claims. The company’s growth aligns with broader trends in India’s healthcare sector, which is becoming a hub for private equity investment. According to a Bain & Company report from January, India is expected to host substantial healthcare deals, maintaining its leadership in deal value across the Asia-Pacific region.

The Rise of Private Healthcare Investment

The report indicated that India likely hosted 22 healthcare deals in 2023, with a deal value projected at $4.6 billion, closely following the $4.7 billion from the previous year. The growing expenditure on private healthcare, coupled with an expanding pharma manufacturing and services sector, and an evolving healthcare technology ecosystem, are key drivers attracting private equity investments in India.

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