[Disclosure: AFN’s parent company, AgFunder, is an investor in Tractor Junction.]
India’s Tractor Junction, a startup enabling farmers to research, buy, sell, finance, and insure tractors and commercial vehicles, posted a 62% year-over-year leap in revenues in FY 2026 (April 1, 2025-March 31, 2026) to ₹198.4 crore ($20.7 million) and aims to more than double revenues in FY 2027.
The firm, which is giving 80 eligible employees a chance to convert some of their earned stock options into cash through a ₹3 crore program, said the buyback—its second ESOP [employee stock ownership plan] liquidity event in two years— is a “signal of the conviction we have in the road ahead.”
Cofounder and CEO Rajat Gupta added: “FY26 was a defining year for us. The people who built this momentum deserve to share in the value they have created. With clear unit economics, a deep rural moat, and a sharper product engine, we are now setting ourselves the ambition of ₹400 ($42 million) crore in FY27.”
He added: “We are not yet breakeven, but we have improved the EBITDA loss from 35% four years back to now 3.5% in FY26 .”
In FY26, he said, the FINJ financial services business has grown 4x, while the commerce and platform businesses each grew by 40% year-over-year.
Financing farm mechanization
While farmers in some markets are deploying high-tech ‘bots to harvest and spray crops, many farmers still struggle with access to basic mechanization in the form of tractors and implements, says Tractor Junction, which raised a $22.6 million Series A round in November.
In India, the challenges are exacerbated by a highly fragmented and opaque market for new and used farm vehicles, unfair pricing, and a lack of financing options, said Gupta.
“For far too long, farmers have been locked out of formal finance and quality vehicle ownership. Through Tractor Junction and [financial services business] FINJ, we’re changing that narrative by combining data, technology, and on-ground presence.”
Founded in 2018 by Rajat Gupta, Shivani Gupta, and Animesh Agarwal, Tractor Junction runs an online marketplace where farmers can research and compare new tractors and farm equipment from leading OEMs such as Mahindra and John Deere and connect with dealers. It also operates a fast-growing offline commerce business through physical showrooms, where it buys and sells used tractors and commercial vehicles.
Via a fintech business (FINJ) launched in January 2024, it also provides access to financing and insurance, enabling farmers to “access credit at up to 30% lower interest rates than the unorganized sector [unregulated sources of credit that many farmers rely on] by leveraging technology and data-led underwriting.”
Tractor Junction has three revenue streams:
- Platform: The digital marketplace earns revenue by generating leads and selling advertising to OEMs and dealers.
- Commerce: The company buys and sells vehicles through its network of company-owned and operated outlets in 25 cities in six states, earning a margin on each sale. It recently rolled out an AI-based pricing engine that uses online and offline data to improve valuation accuracy.
- FINJ financial services: FINJ earns fees by connecting farmers with affordable credit and insurance products through partner lenders, and has an annual disbursal run rate of nearly ₹3333 crore ($348 million).
Historically, said Gupta, farmers relied on unorganized financing from local commodity traders at extremely high interest rates (30–40%). With Tractor Junction, he said, they can now access funds at around 20%. Given that 60% of its customers are new to credit, Tractor Junction can help them enter the formal credit ecosystem enabling interest rates to drop to 13–15% over time as they build credit history.
By the numbers:
Tractor Junction claims that:
- FY 2026 operating revenue jumped 62% to ₹198.4 crore ($20.7 million). In FY2027 it is aiming for ₹400 crore ($42 million)
- It has 60 million yearly visitors and 50+ OEM partnerships across tractors, commercial vehicles, three-wheelers, and two-wheelers.
- Its fintech vertical FINJ now operates across 17 states with 35+ lender partners and 19,000+ channel partners.
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