How StarAgri empowers the agri value chain
Star AgriWarehousing & Collateral Management Ltd (StarAgri) has come a long way ever since the Mumbai-based agritech company commenced its journey in 2006 as an agri-warehousing and collateral management services provider. The Rs1,600-crore company, backed by the Singapore government investment firm Temasek Holdings, is today one of the most trusted, integrated, technology-led agriculture solutions providers, and its offering spans the entire agricultural value chain: from managing warehouses and collateral management to procurement, trade facilitation, financing solutions, digital marketplaces and technology-based, value-added data services.
Established in 2006 with the mission to empower farmers to maximise yields and incomes, as well as to leverage smart technology to unlock value and efficiency in the agri supply chain, the company has emerged as India’s largest profitable, tech-led agri value chain platform. Today, more than 150,000 stakeholders, including corporates, traders, processors, millers and FPOs, as well as over 400,000 farmers across India, rely on its services to drive efficiency and growth. Over 3.38 million MT of commodities are effectively stored and managed by the ground team through its professional warehouses.
Robust capabilities
Mumbai-based StarAgri, counting on its 3,000-odd employees, runs a pan-India network of over 2,293 warehouses (total warehousing capacity: 5.08 million MT and total silo capacity: 16,000 MT) in 389 locations across 18 states. With a total warehousing capacity of 5.08 million MT, the company holds India’s largest private-sector warehousing capacity. While setting up warehousing infrastructure, the company has consciously followed an asset-light model, as 95 per cent of its warehouses are on lease or on revenue sharing.
Complementing its extensive warehousing services, the company, with expertise in 116 commodities, has established strategic relationships for its collateral management business with 26 financial institutions nationwide, including PSUs, private sector banks, financial institutions and NBFCs.
The total AUM managed in the collateral management business for financial institutional clients has increased to more than Rs17,000 crore in FY25 from Rs10,000 crore in FY23. The company has disbursed Rs9,000 crore in loans and facilitated Rs1.5 lakh crore in warehouse receipt-backed financing. StarAgri has remained profitable since its inception, while its non-performing assets continue to remain below one per cent.
Apart from its domestic presence (33 branch offices), StarAgri is now also creating its footprint in Africa, where it is aiming to cover 2 million farmers (20–25 per cent agri land) in the next 4-5 years. The company already has offices in Nigeria, Uganda, Zambia and Tanzania. Moreover, it also has offices in Dubai and Singapore.
“Our services span the entire agricultural value chain, from managing warehouses and collateral management to testing, procuring and financing agricultural commodities. At the core of our business model is the trust reposed in us by various stakeholders in the agriculture sector. We have built a ‘phygital’ platform across the agricultural value chain and an integrated marketplace, connecting stakeholders through deep linkages, aligning with our ‘sourcing to settlement’ philosophy,” says Amith Agarwal, co-founder and CEO of Star AgriWarehousing & Collateral Management Ltd.
“Through backward-linkage services, we collaborate with farmers, providing them with essential resources and support, including financial solutions to reduce dependency on informal sources and enhance crop quality and yield. Our forward-integration initiatives ensure that farmers establish direct connections between their farms and the market, eliminating intermediaries and ensuring better prices. Over the years, we have simplified access to finance, warehousing, and pre- and post-harvest services, while connecting farmers directly to digital marketplaces. Today, we are an integrated agri-market platform operating on the three principles of technology, transparency and trust,” adds Agarwal.
When Temasek picked up a stake in StarAgri in 2014, it was the global investment firm’s maiden investment in the Indian agri-logistics space. The firm invested around $50 million, acquiring approximately 27 per cent of the company. Prior to this, in 2012, IDFC Alternatives had invested in the agritech firm. In 2019, Bahrain’s Investcorp acquired the PE business of IDFC Alternatives, including its stake in the company; however, it subsequently exited the company by 2022.
StarAgri recently filed draft papers with SEBI for a Rs450 crore fresh issue IPO, complemented by an offer-for-sale of 2.69 crore shares. While the DRHP was initially filed in December 2024, the company is currently making the necessary modifications as per SEBI’s requirements. It is expected to re-file the DRHP sometime in June-July this year. Meanwhile, the company has secured loans of Rs500 crore from SBI and Axis Bank to carry out its growth plans.
Growth trajectory
The last few years have been exceptionally impressive for the company, as its income grew to Rs1,007 crore in FY24 and then to Rs1,560 crore in FY25, from around Rs390 crore in FY22. PAT surged to Rs68 crore in FY25 from Rs12 crore in FY22. The company is looking to achieve a topline of over Rs2,000 crore in the current fiscal year. According to a report by Frost & Sullivan, StarAgri is the largest by revenue and the most profitable technology-led integrated value chain services platform from FY22 to FY25. The company is estimated to be the largest player within the agricultural commodity-based financing (collateral management) space in India.
“Ours is a business of trust. At the core of our business model is the trust reposed in us by various stakeholders in the agriculture sector, and building that trust requires time and perseverance. Over the years, we have put in a lot of effort to integrate ourselves with the agricultural community, and now we are finally reaping the benefits. Our business is gaining momentum, and we expect this momentum to continue going forward amid a favourable policy environment. Over the next 10 years or so, we aim to grow at a CAGR of at least 20 per cent,” says Agarwal, who, along with three other co-founders – Suresh Goyal, Amit Goyal and Amit Khandelwal – set up the company in 2006 in Jaipur (later relocating to Mumbai in 2009) to develop warehousing capabilities for the agricultural sector.
All four founders come from Rajasthan, with backgrounds in agriculture and commodity trading, and are well versed in the nuances of the farming sector. Before promoting StarAgri, they were channel partners for ICICI Bank, facilitating the bank’s priority lending programme in Rajasthan. It is through sheer grit and perseverance that the founders have been able to transform the company. Today, its comprehensive offerings span procurement, storage, warehouse receipt and supply chain financing, online market linkages, digital farm management and advisory services. The company’s unique ‘phygital’ approach positions it as a one-stop solution for both physical and digital transactions within its stakeholder ecosystem.
Today, StarAgri, competing with players like Arya.ag, DeHaat, Ninjacart, BigHaat, Origo, Vegrow and Procol, is one of Asia’s leading integrated post-harvest management companies. It offers solutions in warehousing, procurement and collateral management of agri-commodities. Besides this, the company also has two subsidiaries: Agriwise Finserv Ltd and Star Agribazaar Technology Pvt Ltd. Agriwise provides credit to small farmers, FPOs, input distributors and retailers, agri-infrastructure or equipment providers, contract farmers, or any value-generating participant in the agri value chain, while Agribazaar is an online e-mandi platform for the trading of agricultural commodities. It allows buyers and sellers to facilitate trades directly, with zero interference from middlemen. In addition, FarmersFortune is a platform that aims to streamline inventory management for various agri-industry participants.
Apart from serving farmers and other stakeholders, the company engages with corporate clients such as Britannia, Cargill, ITC, Adani Wilmar, Suguna Foods, MCX, Agrocorp, UB, Glencore, Olam, LDC, ADM and Inditrade. In collateral management, the company has financing partners including Axis Bank, HDFC Bank, ICICI Bank, SBI, Bank of India, Kotak Mahindra Bank and Yes Bank. In co-lending, the company partners with Bank of Maharashtra, Canara Bank, Central Bank of India, Indian Overseas Bank, Indian Bank, State Bank of India, UCO Bank and Union Bank of India.
StarAgri’s scientific, professionally managed warehousing facilities allow farmers, aggregators, corporate customers and traders to store their produce (such as Bengal gram, masoor dal, paddy, sugar, soyabean, sunflower seeds and wheat) as per their business needs, helping them handle the pressure of price-volatile situations. IoT-enabled sensors provide farmers and institutional customers with live updates on warehouse conditions and inventory status, all within a few clicks. Further, round-the-clock monitoring ensures safety, security and complete visibility for clients.
Footprint
The company has a pan-India presence of 1,168 professional warehouses and 1,125 field warehouses across 18 states in India. Its professional warehouses have an aggregate installed capacity of 5.08 million MT. In FY25, the company reached a new milestone in its warehousing business, achieving a peak stock of 3.22 million MT: the highest ever for its professional warehousing operations. Its average annual capacity utilisation also improved, rising to 73 per cent. This was made possible by its focus on strategic de-hiring and entering into back-to-back agreements with warehouse owners. For comparison, its capacity utilisation rate last year was 70 per cent.
Complementing its extensive warehousing services, the company has established strategic relationships for its collateral management business with 26 financial institutions nationwide, including PSUs, private sector banks, financial institutions and NBFCs. As one of the largest private-sector collateral management agencies in India, StarAgri enables credit flow across the agricultural value chain, bridging the gap between farmers and institutional lenders. The peak AUM managed by the company in its collateral management business for financial institutional clients grew 6 per cent year-on-year to Rs17,000 crore in FY25.
The company uses AI and ML to grade and assess commodity quality in its warehouses. AI- and ML-driven algorithms analyse sensor data to predict potential issues and recommend preventive actions. This ensures consistent and reliable collateral quality across locations.
Through its digital platform, Agribazaar, the company offers value-added services such as price discovery tools and market analytics. These services strengthen farmers’ bargaining power and broaden their market access. By connecting all stakeholders across the supply chain – farmers, traders and buyers – the platform enables swift collateral liquidation. This reduces reliance on intermediaries and enables faster, fair-value sales.
“We ensure end-to-end traceability of commodities used as collateral through periodic audits, blockchain-enabled monitoring, and robust quality control measures. Integrating best-in-class technologies helps us detect and prevent financing fraud early. Leveraging technology, we ensure stored commodities meet the stringent standards of our partner financial institutions. This reinforces lender confidence and enables seamless credit issuance. Overall, our technology-led collateral management systems enable us to make the agri-credit ecosystem more efficient and transparent,” explains Agarwal.
FarmersFortune, the company’s material subsidiary, specialises in the procurement and trading of agricultural and allied commodities. Through this platform, StarAgri delivers customised, end-to-end trade facilitation solutions. The company helps agri-companies procure and store critical raw materials efficiently, boosting business performance. The company’s ability to competitively source and supply agricultural commodities – at the right time, quality and price – relies heavily on its network of third-party suppliers. Here, it maintains strong arrangements with various partners who procure specific commodities based on customer requirements.
Under procurement and trade facilitation services, the company has a pan-India supplier network comprising farmers, traders and FPOs. This supplier base spans 304 cities across 16 states. This business segment primarily serves millers, processors and corporate buyers, leveraging an extensive network of procurement and delivery centres to source non-perishable agricultural commodities of the desired quality and price.
As of FY25, FarmersFortune specialises in 113 commodities. The company catered to over 228 customers through its procurement and trade facilitation business, contributing around 72 per cent of overall revenue.
“We maintain stringent customer-defined quality standards through rigorous testing and inspection, typically at our own cost. All procured goods are backed by robust warranties that guarantee freshness and defect-free quality. Prices in our procurement and trade facilitation business are set by prevailing mandi and market rates. We operate on a back-to-back procurement model, ordering from suppliers only after customers confirm quantity and price. Moreover, we operate with minimal commodity price risk in this vertical, protected by advance margins collected from customers,” says a company official.
Agriwise, the finance arm of StarAgri, addresses the need for structured, timely and adaptable financing, currently a fundamental factor in driving sustainable growth in Indian agriculture. Through customised financial solutions, Agriwise enables farmers and agripreneurs to invest in future-ready agricultural inputs, from modern farm equipment to climate-resilient practices.
StarAgri’s approach of integrating financial solutions with storage and distribution helps farmers manage cash flow more effectively and reduce dependence on informal lenders. Through Agribhumi, the company has developed a unique, tech-powered instrument that evaluates farmers’ creditworthiness. Similarly, real-time satellite-based digital crop survey data and GIS dashboards guide insurance and credit decisions, mitigating risks and boosting lender confidence.
In co-lending, Agriwise’s partnerships with banks or NBFCs are based on capital contributions. In the business correspondent model, the company extends partner banks’ reach without requiring them to deploy capital. Backed by 26 banking partners, the company offers financing through its own capital, co-lending and correspondent models. In FY25, Agriwise recorded AUM worth Rs336 crore and served over 2,500 customers.
Through Agribazaar, StarAgri is transforming agri-commodity trade. By blending digital innovation with industry-leading expertise, Agribazaar empowers farmers, traders and institutional buyers with services that are fast, fair and ready for the future.
Agribazaar Tradefloor is the company’s dedicated e-auction platform, where verified buyers and sellers list their agricultural commodities. Agribazaar Marketplace, on the other hand, is a digital buy-sell platform that connects demand and supply. Tradefloor enables open bidding under clearly defined parameters such as quality, quantity and location, while the Marketplace supports multiple rounds of negotiation, helping buyers and sellers arrive at a fair and mutually beneficial price.The volume and number of trades on the Agribazaar marketplace have increased from 5,527 trades in FY22 to 7,353 trades in FY25. The gross merchandise value of goods traded rose from Rs10,289 crore in FY22 to Rs12,155 crore in FY25.
“In the coming years, we aim to promote greater digital adoption among farmers and expand our rural footprint significantly. We are partnering with the government on initiatives such as the Agriculture Stack Initiative under the Digital Agriculture Mission. We also aim to address gaps in rural financing, digital access and market linkages by leveraging government programmes such as the Agriculture Infrastructure Fund and the Rashtriya Krishi Vikas Yojana. Globally, we are expanding our expertise to countries with similar agricultural landscapes where our digital agri-stack can be implemented. By replicating our proven business model, we aim to support global food and nutrition security,” stated the company CEO.
Agarwal says the company is planning to introduce voice-based products for farmers. Having invested in setting up a network of 14 agri labs (the company also has a modern lab in Jaipur with an investment of Rs25 crore), it is also planning to establish food labs for processors and create a platform for crop insurance.
With all these initiatives and efforts in place, StarAgri is committed to digitally transforming the agricultural ecosystem. Through Agribazaar, Agripay and Agrigate, the company connects farmers with buyers, streamlines payment processes and enhances warehouse management. It is also integrating AI, IoT and blockchain to strengthen traceability and transparency.
The increasing adoption of digital tools in farming empowers farmers with real-time data and predictive soil and crop forecasts, helping them make better decisions. This also helps reduce inefficiencies and wastage, leading to higher profitability and sustainability. The company’s unique ‘phygital’ approach positions it as a one-stop solution for both physical and digital transactions within its stakeholder ecosystem. On the strength of these factors, StarAgri is well positioned to capture the significant growth potential of India’s farm sector.