Tractor Junction receives $5.7 million in seed funding from AgFunder and others

Disclosure: AFN’s parent company, AgFunder, is an investor in Tractor Junction.

india tractor junctionan online marketplace for tractors and other agricultural vehicles, raised $5.7 million in funding.

  • The round was co-led by India-based Info Edge Ventures – the internet giant’s VC arm Edge of informationwho was an early funder of the food delivery app Zomato – and Omnivorous.
  • Existing investors Rockstart Agribusiness Fund and AgFunder — the latter through his GROW Impact Fund – came back for this round. Tractor Junction graduates from AgFunder-supported program GROW Impact Accelerator in 2019.
  • A number of angel investors, including used car market co-founders Vikram Chopra and Mehul Agrawal, also participated. Cars24; Vellayan Subbiah and Arun Venkatachalam of Chennai-based conglomerate the Murugappa Group; and veteran agribusiness executive Sanjiv Rangrass.

Tractor Junction said it would use the funding to open multiple physical stores, adding a physical touchpoint for its users. It will also devote part of the capital to acquiring talent and improving its financial services offerings.

Why is it important:

As all kinds of weird and wonderful agtech automation – from robots to AI – hits the market around the world, the majority of farmers around the world continue to struggle to access what many would consider basic mechanization. : tractors and implements.

In India, the cost barrier for this equipment is exacerbated by a highly fragmented and opaque market for new and used agricultural vehicles, unfair pricing and a lack of financing options, according to the co-founder and director of the operation of Tractor Junction, Animesh Agarwal.

Tractor Junction co-founders Animesh Agarwal (left), Shivani Gupta (middle) and Rajat Gupta (right). Image Credit: Tractor Junction

There is “a lack of reliable sources for smooth transactions”, he says APN.

“Dealers are also struggling to reach their target customers [and set appropriate prices for] used vehicles,” he added. “These are some of the problems Tractor Junction try to solve.

How it works:

Smallholders can visit the Noida-based startup’s market to buy and sell tractors, harvesters and implements – both used and new. They can also benefit from financing to pay for their purchases, as well as insurance.

“We provide accurate product and pricing information to the customer and also facilitate the connection of OEMs and resellers with customers,” says Agarwal. “Recently, we also ventured into a full-stack transaction model for tractors, where customers can buy or sell their used vehicles tractor at Tractor Junction in all serenity. »

By the numbers:

Tractor Junction claims to have achieved:

  • “Operational” profitability
  • Growth multiplied by 7 in annual turnover over the last two years
  • 30 million unique visitors to its marketplace in the last 12 months
  • 1 million hours of original educational content shared on social media

What they say:

“The market for used tractors and agricultural equipment is very disorganized and lacks established sales channels. As a result, farmers find it difficult to access quality information and inventory for a relatively high value purchase,” Kitty Agarwal, partner at Info Edge Ventures, said in a statement.

“Tractor Junction brings convenience, transparency and affordability to the farm equipment purchasing process, empowering farmers and creating a winning ecosystem for all stakeholders.”

Jinesh Shah, Managing Partner at Omnivore, added, “By removing the fog of information asymmetry, Tractor Junction is empowering smallholder farmers to access valuable data and affordable, high-quality agricultural vehicles. . [This] will have a significant impact on the profitability of farmers.

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