Arya.ag introduces BNPL service for commodity purchase
Arya.ag has achieved a first in Indian agritech by launching buy now pay later – BNPL service. This is relevant to every buyer who buys roughly 150-200 tonnes of agri produce (grains/oilseeds/pulses traded annually) and will help mitigate the age-old challenges of finance in the commodity buying space.
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 rental 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 and small agri businesses selling on the platform.”
In the $370 billion markets of non-perishable agriculture, this is one-of-a-kind service. Trade financing already happens in the agribusiness in a secured manner; however, this is the 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 the BNPL is expected to be a significant driver of volumes in the next 6 to 12 months. This service is available to all sellers and buyers registered on the Arya.ag platform all over the country. 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 two crores.
Also Read: SpiceJet awarded Diamond rating for flight health and safety amid COVID-19 pandemic
To avail the BNPL, buyers need to upload their basic KYC and financial details. Once onboarded, they can avail credit in a matter of minutes. As a platform, Arya.ag is bringing together multiple player offering BNPL services and plans to extend these financial solutions to warehouse rent, and loan repayment etc.
Arya is India’s leading agritech startup with a focus on integrated post-harvest services. Driving technology through a human-centered approach, Arya’s agritech and fintech platform leverages technology to bridge the last mile.
Pingback: The makers of Squid Game are set to make the second season.