Arya.ag launches ‘Buy Now Pay Later’ service for agri commodity purchase

Arya.ag launches ‘Buy Now Pay Later’ service for agri commodity purchase
With BNPL, the seller gets paid upfront, the lender benefits from picking up cash discounts for early payment and the buyer gets to pay later without paying interest making it a win for all the stakeholders of the transaction

Arya.ag – India’s leading integrated agri service platform, has launched BNPL (Buy Now Pay Later). This service is relevant to every buyer who buys roughly 150-200 tonnes of agri commodities such as grains, oilseeds, pulses traded annually, and will help mitigate the age-old challenges of finance in the commodity buying space.

Buyers on the Arya.ag platform can currently receive a credit of up to INR 25 lakhs with a 0% interest rate for 14 days. This amount will shortly go up to 2 crores. To avail the BNPL, buyers need to upload their basic KYC and financial details. Once onboard, they can avail credit in a matter of minutes. As a platform, Arya.ag is bringing together multiple players offering BNPL services and plans to extend these financial solutions to warehouse rent, loan repayment, among other related facilities.

Highlighting the launch of BNPL, Prasanna Rao, CEO Arya.ag said, “There is always a need for simple and innovative financial solutions in every sector. BNPL, which is mostly available in the retail space will now be made available for people in the B2B trade of agri commodities. Through the BNPL service, Arya.ag will bring in more ease and trust in commerce and the market linkage transactions. It will mitigate payment risk for the supplier and add assurances for the buyer which will benefit farmers, FPOs (farmer producer organisations) and small agribusinesses selling on the platform.”

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In the US$370 billion markets of non-perishable agriculture, this is a one-of-a-kind service. Trade financing already happens in the agribusiness in a secured manner; however, this is a first for unsecured finance.

With BNPL, the seller gets paid upfront, the lender benefits from picking up cash discounts for early payment and the buyer gets to pay later without paying interest making it a win for all the stakeholders of the transaction.

Demand for financial solutions form a crux of the commodity market and BNPL is expected to be a significant driver of volumes in the next 6-12 months. This service is available to all sellers and buyers registered on the Arya.ag platform all over the country.

What does Arya offer?

Arya is India’s leading agritech start-up with a focus on integrated post-harvest services. Driving technology through a human-centred approach, Arya’s agritech and fintech platform leverages technology to bridge the last mile. Through its business model with over five million tonnes of storage capacity across 5,500 warehouses in 21 Indian states, Arya facilitates farmers, aggregators, farmer producer organisations, food processors and end-user corporates to avoid post-harvest losses. It efficiently connects the supply side of the agri ecosystem with the demand side. Arya assists agri commodity sellers to avoid distress sale of produce by extending post-harvest credit. It has completed loan disbursements of over Rs 4,400 crores. Its integrated and easy-to-use platform also helps users to choose ancillary services like warehouse management, access to finance, quality testing, storage protection services, and connects produce to buyers through a robust technology-enabled back-end ecosystem.

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