GuarantCo, HSBC back Arya.ag to strengthen India’s agri ecosystem

In a move aimed at strengthening the agricultural ecosystem, GuarantCo, a member of the Private Infrastructure Development Group (PIDG), has issued two partial guarantees for Rs 2.5 billion (approximately $30 million) loan facility extended by HSBC India to Arya.ag, a grain commerce platform. Through this, GuarantCo marks its debut in India’s agricultural sector with a transaction aimed at bolstering financial inclusion and strengthening climate resilience.

The loan facility is set to provide much-needed post-harvest liquidity to farmers, farmer-producer organisations (FPOs), and small agri-enterprises, facilitating their integration into the formal banking system. By leveraging this financial support, these stakeholders can unlock greater value for their crops and improve overall economic outcomes.

Agriculture is a cornerstone of India’s economy, employing nearly 60% of the workforce and contributing around 20% to the GDP. Yet, its full economic potential remains untapped, with more than half of farming households lacking access to formal credit.

According to the release, Arya.ag is bridging this gap by driving financial inclusion for farmers through its innovative solutions. By providing farmgate-level storage, instant commodity-backed financing, and market linkages, the platform empowers farmers, FPOs, and agri-enterprises to sidestep distress sales during post-harvest price slumps. Instead, they can store their produce and sell it during the off-season, often reaping 20-30% higher returns.

GuarantCo’s Impact team assessed the project as aligning with the UN Sustainable Development Goals: SDG 2 Zero Hunger (Double the productivity and incomes of small-scale food producers) and SDG 15 Life on Land (Protect, restore and promote sustainable use of terrestrial ecosystems, halt and reverse land degradation and halt biodiversity loss).

GuarantCo will provide partial credit guarantees for two separate loan facilities from HSBC India to Arya.ag’s integrated commerce platform Aryatech, and its fintech arm Aryadhan. Arya has also been supported by a Technical Assistance grant from the PIDG Trust.

Nishant Kumar, Managing Director, Asia Investments at GuarantCo and Head of Coverage – Asia at PIDG said, “We are delighted to join hands with HSBC India for the first time to support Arya in developing the marketplace infrastructure for India’s crucial agricultural sector. Arya is a unique and innovative company that has the power to unlock the potential of underserved farmers by expanding storage, finance and commerce markets, to ultimately increase their revenues.”

“The transaction is expected to provide added market transformation value as replication of Arya’s integrated value chain would enhance the resilience of the domestic post-harvest market. GuarantCo, through the Private Infrastructure Development Group, continues to seek out opportunities to increase economic impact and empower lower-income communities to deliver against the UN’s Sustainable Development Goals in alignment with the PIDG 2030 strategy.”

Sonali Shahpurwala, MD and Head-Inclusive Banking Unit, HSBC India, said, “We are pleased to collaborate with GuarantCo and Arya on this significant transaction that supports the agriculture sector, a primary driver for India’s economy. This loan underscores our commitment to provide financial solutions that empower businesses like Arya to enhance infrastructure, drive sustainable growth and create a lasting impact.”

Anand Chandra, Co-founder and COO of Arya.ag said, “Partnering with GuarantCo and HSBC India expands our ability to connect farmers, FPOs, and agri-enterprises to vital resources while driving trust and transparency through technology. GuarantCo’s support underscores the transformative power of our integrated model that drives secure storage, accessible financing, and transparent market linkages beyond traditional reach shaping a more efficient and inclusive agricultural ecosystem.”