Swedfund invests in resource efficiency and climate resilience for smallholder farmers in India

Swedfund invests in resource efficiency and climate resilience for smallholder farmers in India Efficient crop storage, improved access to finance and digital solutions play an important role in reducing waste and strengthening resilience in India’s agricultural sector. To support the development of such solutions, Swedfund invests USD 7.5 million in the Indian agri-tech company Arya.ag. The agriculture sector employs around 40 percent of India’s population and plays an important role in food security and rural livelihoods. At the same time, many smallholder farmers face increasing challenges related to climate change, post-harvest losses and limited access to finance. Arya addresses these challenges by combining efficient storage, crop-backed financing and digital tools that help reduce waste, improve price realisation and strengthen farmers’ economic resilience. “More efficient storage, financing and trading of agricultural produce contribute to more resilient food systems. Through this investment, we support solutions that reduce waste, strengthen climate adaptation and increase inclusion in agricultural value chains. Arya demonstrates how digitalisation and resource efficiency can deliver both impact and financial sustainability,” says Gunilla Nilsson, Investment Director for Energy & Climate at Swedfund. Swedfund’s investment will help scale Arya.ag’s technology platform and expand access to financing linked to stored agricultural produce. By reducing post-harvest losses and improving liquidity for smallholder farmers, the investment strengthens resource efficiency across the value chain and supports more stable incomes. The investment is expected to support SDG 10 by strengthening economic resilience for vulnerable smallholder farmers, and SDG 13 through improved climate adaptation in agriculture. The investment is a co-investment together with GEF Capital Partners’ South Asia Growth Fund III, the International Finance Corporation (IFC) and British International Investment (BII), the UK’s development finance institution.