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, has raised a $22.6 million Series A round.
- The round includes $17 million in equity funding led by Astanor and $5.6 million in debt.
- Existing investors InfoEdge Ventures (the VC arm of internet giant Info Edge, an early backer of food delivery app Zomato) and Omnivore returned for this round.
The firm, which graduated from the AgFunder-backed GROW Impact Accelerator in 2019, said the funds would further its mission to “empower millions of underserved farmers with access to reliable vehicles and affordable credit.”
Why it matters:
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.
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, says cofounder and CEO Rajat 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.”
How it works:
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 is now “operating close to breakeven” and 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 75 company-owned and operated outlets, 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.
According to Gupta: “Historically, farmers relied on unorganized financing from local commodity traders at extremely high interest rates of 30–40% per annum. With our platform, they can now access funds at around 20%. Since nearly 60% of our customers are new to credit, we help them enter the formal credit ecosystem enabling their interest rates to further drop to 13–15% over time as they build credit history.”
He added: “India has nearly 130 million farming households, yet only about 6 million own the country’s 9 million tractors. These farmers use our platform extensively for information discovery, so we have deep data insights on their behavior and history. This includes land ownership details, past vehicle ownership, and usage patterns.
“Additionally, since we operate one of the largest used-tractor marketplaces, our pricing engine provides highly accurate asset valuations. All of this—farmer data, asset insights, and behavioral signals—enables more precise, technology-driven underwriting, allowing lenders to offer better and fairly priced loan products.”
By the numbers:
Tractor Junction claims that:
- FY 2025 operating revenue nearly doubled to ₹120.8 crore ($13.65 million)
- Its current annual run rate (ARR) is 250 Cr ($28.2 million) but it expects to have an ARR of 1,000 Cr ($113 million) in two years’ time.
- It has sold 7,000 tractors in the last three years.
- Its platform has enabled 30,000+ farmers to mechanize operations over the last two years.
- It has 60 million yearly visitors and 50+ OEM partnerships across tractors, commercial vehicles, three-wheelers, and two-wheelers.
- Its fintech vertical FINJ has disbursed over $169 million in loans in partnership with 25 lenders.
What they say:
“India’s rural economy is central to the future of sustainable food systems,” said Astanor partner Hendrik van Asbroeck. “Tractor Junction has built a trusted and affordable platform for rural mechanization by combining technology, on-the-ground reach, and fintech innovation.”
Kitty Agarwal, partner at Info Edge Ventures, added: “Rajat, Animesh and Shivani are very purpose-driven, customer-centric founders who have built a solid business with strong fundamentals. This is especially important when you are serving the rural consumer with commerce and financial products that enable their livelihood.”
Omnivore investment director Abhilash Sethi added: “We have seen Tractor Junction evolve from a tractor discovery platform into a comprehensive rural automotive platform.”
